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Ford (F) Gains But Lags Market: What You Should Know

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Ford (F - Free Report) closed the most recent trading day at $9.76, moving +0.1% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.05%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq gained 1.66%.

Prior to today's trading, shares of the automaker had lost 4.41% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 6.05% and lagged the S&P 500's loss of 2.76% in that time.

F will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.33, up 22.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.69 billion, down 0.6% from the year-ago period.

F's full-year Zacks Consensus Estimates are calling for earnings of $1.38 per share and revenue of $146.35 billion. These results would represent year-over-year changes of +6.15% and -1.31%, respectively.

Any recent changes to analyst estimates for F should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. F is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note F's current valuation metrics, including its Forward P/E ratio of 7.08. For comparison, its industry has an average Forward P/E of 10.7, which means F is trading at a discount to the group.

Meanwhile, F's PEG ratio is currently 0.97. 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. F's industry had an average PEG ratio of 1.24 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 172, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow F in the coming trading sessions, be sure to utilize Zacks.com.


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