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Ford (F) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Ford (F) closed at $8.41, marking a -1.41% move from the previous day. This change lagged the S&P 500's daily loss of 0.09%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.16%.

Prior to today's trading, shares of the automaker had gained 1.43% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 0.26% and lagged the S&P 500's gain of 2.35% in that time.

F will be looking to display strength as it nears its next earnings release. In that report, analysts expect F to post earnings of $0.26 per share. This would mark a year-over-year decline of 39.53%. Meanwhile, our latest consensus estimate is calling for revenue of $36.53 billion, down 6.36% from the prior-year quarter.

F's full-year Zacks Consensus Estimates are calling for earnings of $1.21 per share and revenue of $145.65 billion. These results would represent year-over-year changes of -6.92% and -1.78%, respectively.

Investors should also note any recent changes to analyst estimates for F. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% higher. F is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, F is holding a Forward P/E ratio of 7.08. This represents a discount compared to its industry's average Forward P/E of 10.44.

We can also see that F currently has a PEG ratio of 0.78. 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. The Automotive - Domestic was holding an average PEG ratio of 1.15 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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