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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Ford Motor (F - Free Report) . F is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Investors will also notice that F has a PEG ratio of 3.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. F's PEG compares to its industry's average PEG of 3.81. Over the last 12 months, F's PEG has been as high as 3.19 and as low as 0.54, with a median of 0.91.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. F has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.69.
Value investors will likely look at more than just these metrics, but the above data helps show that Ford Motor is likely undervalued currently. And when considering the strength of its earnings outlook, F sticks out as one of the market's strongest value stocks.
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Is Ford Motor (F) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Ford Motor (F - Free Report) . F is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Investors will also notice that F has a PEG ratio of 3.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. F's PEG compares to its industry's average PEG of 3.81. Over the last 12 months, F's PEG has been as high as 3.19 and as low as 0.54, with a median of 0.91.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. F has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.69.
Value investors will likely look at more than just these metrics, but the above data helps show that Ford Motor is likely undervalued currently. And when considering the strength of its earnings outlook, F sticks out as one of the market's strongest value stocks.