Back to top

Image: Bigstock

Ford (F) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Ford (F - Free Report) closed at $9.10, marking a +0.44% move from the previous day. This move outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.92%.

Prior to today's trading, shares of the automaker had gained 5.47% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 3.68% and the S&P 500's loss of 4.37% in that time.

F will be looking to display strength as it nears its next earnings release, which is expected to be January 23, 2019. On that day, F is projected to report earnings of $0.33 per share, which would represent a year-over-year decline of 15.38%. Meanwhile, our latest consensus estimate is calling for revenue of $36.25 billion, down 12.22% from the prior-year quarter.

F's full-year Zacks Consensus Estimates are calling for earnings of $1.36 per share and revenue of $146.87 billion. These results would represent year-over-year changes of -23.6% and -1.12%, respectively.

Investors might also notice recent changes to analyst estimates for F. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.17% higher. F currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that F has a Forward P/E ratio of 6.68 right now. This represents a discount compared to its industry's average Forward P/E of 9.92.

Also, we should mention that F has a PEG ratio of 1.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Domestic industry currently had an average PEG ratio of 1.26 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Ford Motor Company (F) - free report >>

Published in