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Is Ford (F) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Ford (F - Free Report) is a stock many investors are watching right now. F is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.31, which compares to its industry's average of 9.34. Over the past 52 weeks, F's Forward P/E has been as high as 8.44 and as low as 5.67, with a median of 7.09.

We also note that F holds a PEG ratio of 1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. F's industry has an average PEG of 1.09 right now. F's PEG has been as high as 1.43 and as low as 0.75, with a median of 0.98, all within the past year.

Another valuation metric that we should highlight is F's P/B ratio of 1.10. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.25. Over the past 12 months, F's P/B has been as high as 1.31 and as low as 0.83, with a median of 1.02.

Finally, investors should note that F has a P/CF ratio of 3.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.02. Over the past 52 weeks, F's P/CF has been as high as 3.67 and as low as 2.07, with a median of 2.79.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Ford is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, F feels like a great value stock at the moment.


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