We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ford Stock Looks Cheap Now: Is This the Right Time to Buy?
Read MoreHide Full Article
Key Takeaways
Ford's Q1 2026 EPS of 66 cents beat estimates by over 230%, with revenues up 6% to $39.82B.
Adjusted EBIT more than tripled to $3.5B. Ford raised full-year 2026 EBIT guidance to $8.5B-$10.5B.
Model e posted a $777M EBIT loss in Q1, and Ford expects full-year segment losses of $4B-$4.5B in 2026.
U.S. legacy automaker Ford (F - Free Report) is trading quite cheaply currently from a valuation standpoint. Its forward sales multiple of 0.28 is lower than its five-year average. The stock also looks attractively valued relative to its close peers, General Motors (GM - Free Report) and Toyota (TM - Free Report) . Ford has a Value Score of A.
Ford's Forward P/S vs. GM & TM
Image Source: Zacks Investment Research
Ford's first-quarter 2026 results exceeded expectations, with EPS of 66 cents beating the consensus mark by over 230% and also jumping from 14 cents a share in the prior year quarter. This came as first-quarter automotive revenues also rose 6% to $39.82 billion and edged past estimates of $39.34 billion. Impressively, Ford’s adjusted EBIT more than tripled to $3.5 billion.
Ford Motor Company Price, Consensus and EPS Surprise
Additionally, Ford highlighted a $1.3 billion tariff refund. While the refund has not yet been received, the company stated it will help offset rising commodity costs, especially for aluminum.
Ford’s arch rival, General Motors, also benefited from an adjustment of about $500 million tied to a U.S. Supreme Court decision regarding certain tariffs paid under the International Emergency Economic Powers Act (IEEPA). Meanwhile, Japan-based Toyota, which is the #2 vehicle seller in the United States (trailing only General Motors), missed its quarterly operating profit expectations. The metric also declined 49% year over year amid tariff woes. Toyota also trimmed its operating profit guidance for fiscal 2027.
Ford, instead, has raised its current year adjusted EBIT guidance to a range of $8.5-$10.5 billion from $8-$10 billion. A combination of earnings beat, higher guidance and tariff relief might start to give investors the confidence that Ford can outperform in the competitive auto market. Plus, the valuation looks compelling. So, is Ford really worth buying now or there are enough near-term challenges that you consider before jumping in to buy the stock? Let’s see.
Key Considerations Before Investing in Ford
While Ford Blue and Pro segments are performing well, the Model e division continues to weigh on overall profitability. Ford Blue revenues rose 14% year over year in the first quarter of 2026, driven by improved product mix and pricing, even as volumes declined. The company now expects 2026 EBIT in the range of $4.5-$5 billion, up from the prior outlook of $4-$4.5 billion, reflecting stronger operational momentum.
Ford Pro remains the standout performer, supported by robust order books and expanding software and service offerings. The integration of vehicles, software, and physical services continues to strengthen margins. Paid software subscriptions increased 30% year over year to 879,000 in the first quarter, highlighting progress in recurring revenue streams.For the Ford Pro segment, F expects EBIT in the range of $6.5-$7.5 billion.
In contrast, the Model e segment incurred an EBIT loss of $777 million in the last reported quarter, with a negative margin of 63.1%. Although losses improved year over year, they remain significant. Amid slower-than-expected EV adoption, Ford discontinued the F-150 Lightning and now expects full-year Model e losses of $4-$4.5 billion in 2026.
Despite solid EBIT numbers in the first quarter, Ford recorded nearly $2 billion in free cash flow burn. However, management expects cash flow trends to improve over the remainder of the year and projects full-year 2026 free cash flow of $5-$6 billion, compared with $3.5 billion in 2025. However, the company has flagged commodity headwinds of about $2 billion, partly due to higher aluminum costs following disruptions at the Novelis plant. Ford noted that its guidance does not factor in a prolonged Middle East conflict, which could keep oil prices elevated and drive higher logistics and input costs.
What Do Estimates for Ford Suggest?
The Zacks Consensus Estimate for 2026 implies year-over-year growth of approximately 44% in EPS and 1% in automotive revenues. However, the estimate revision trend is mixed. While full-year 2026 estimates have moved higher over the past 60 days, projections for current and next quarter and full-year 2027 have declined.
Image Source: Zacks Investment Research
How to Play F Stock Now
Ford does not look like a compelling buy at current levels. The valuation is attractive, but that alone is not enough to justify a new investment. The business is still navigating uneven profitability across segments and ongoing cost pressures. Until earnings quality and free cash flow improve more consistently and macro conditions stabilize, upside potential may remain limited.
The stock can serve as a value holding, but it lacks a clear near-term catalyst strong enough to support fresh buying. Existing investors can stay invested, while new buyers may prefer to wait for a stronger entry point. Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Ford Stock Looks Cheap Now: Is This the Right Time to Buy?
Key Takeaways
U.S. legacy automaker Ford (F - Free Report) is trading quite cheaply currently from a valuation standpoint. Its forward sales multiple of 0.28 is lower than its five-year average. The stock also looks attractively valued relative to its close peers, General Motors (GM - Free Report) and Toyota (TM - Free Report) . Ford has a Value Score of A.
Ford's Forward P/S vs. GM & TM
Ford's first-quarter 2026 results exceeded expectations, with EPS of 66 cents beating the consensus mark by over 230% and also jumping from 14 cents a share in the prior year quarter. This came as first-quarter automotive revenues also rose 6% to $39.82 billion and edged past estimates of $39.34 billion. Impressively, Ford’s adjusted EBIT more than tripled to $3.5 billion.
Ford Motor Company Price, Consensus and EPS Surprise
Ford Motor Company price-consensus-eps-surprise-chart | Ford Motor Company Quote
Additionally, Ford highlighted a $1.3 billion tariff refund. While the refund has not yet been received, the company stated it will help offset rising commodity costs, especially for aluminum.
Ford’s arch rival, General Motors, also benefited from an adjustment of about $500 million tied to a U.S. Supreme Court decision regarding certain tariffs paid under the International Emergency Economic Powers Act (IEEPA). Meanwhile, Japan-based Toyota, which is the #2 vehicle seller in the United States (trailing only General Motors), missed its quarterly operating profit expectations. The metric also declined 49% year over year amid tariff woes. Toyota also trimmed its operating profit guidance for fiscal 2027.
Ford, instead, has raised its current year adjusted EBIT guidance to a range of $8.5-$10.5 billion from $8-$10 billion. A combination of earnings beat, higher guidance and tariff relief might start to give investors the confidence that Ford can outperform in the competitive auto market. Plus, the valuation looks compelling. So, is Ford really worth buying now or there are enough near-term challenges that you consider before jumping in to buy the stock? Let’s see.
Key Considerations Before Investing in Ford
While Ford Blue and Pro segments are performing well, the Model e division continues to weigh on overall profitability. Ford Blue revenues rose 14% year over year in the first quarter of 2026, driven by improved product mix and pricing, even as volumes declined. The company now expects 2026 EBIT in the range of $4.5-$5 billion, up from the prior outlook of $4-$4.5 billion, reflecting stronger operational momentum.
Ford Pro remains the standout performer, supported by robust order books and expanding software and service offerings. The integration of vehicles, software, and physical services continues to strengthen margins. Paid software subscriptions increased 30% year over year to 879,000 in the first quarter, highlighting progress in recurring revenue streams.For the Ford Pro segment, F expects EBIT in the range of $6.5-$7.5 billion.
In contrast, the Model e segment incurred an EBIT loss of $777 million in the last reported quarter, with a negative margin of 63.1%. Although losses improved year over year, they remain significant. Amid slower-than-expected EV adoption, Ford discontinued the F-150 Lightning and now expects full-year Model e losses of $4-$4.5 billion in 2026.
Despite solid EBIT numbers in the first quarter, Ford recorded nearly $2 billion in free cash flow burn. However, management expects cash flow trends to improve over the remainder of the year and projects full-year 2026 free cash flow of $5-$6 billion, compared with $3.5 billion in 2025. However, the company has flagged commodity headwinds of about $2 billion, partly due to higher aluminum costs following disruptions at the Novelis plant. Ford noted that its guidance does not factor in a prolonged Middle East conflict, which could keep oil prices elevated and drive higher logistics and input costs.
What Do Estimates for Ford Suggest?
The Zacks Consensus Estimate for 2026 implies year-over-year growth of approximately 44% in EPS and 1% in automotive revenues. However, the estimate revision trend is mixed. While full-year 2026 estimates have moved higher over the past 60 days, projections for current and next quarter and full-year 2027 have declined.
How to Play F Stock Now
Ford does not look like a compelling buy at current levels. The valuation is attractive, but that alone is not enough to justify a new investment. The business is still navigating uneven profitability across segments and ongoing cost pressures. Until earnings quality and free cash flow improve more consistently and macro conditions stabilize, upside potential may remain limited.
The stock can serve as a value holding, but it lacks a clear near-term catalyst strong enough to support fresh buying. Existing investors can stay invested, while new buyers may prefer to wait for a stronger entry point. Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.