Ford (F) closed the most recent trading day at $9.49, moving +1.17% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.97%. Elsewhere, the Dow lost 2.32%, while the tech-heavy Nasdaq lost 2.78%.
Prior to today's trading, shares of the automaker had gained 6.47% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 0.52% and the S&P 500's loss of 3.33% 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. The company is expected to report EPS of $0.33, down 15.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.25 billion, down 12.22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $145.46 billion, which would represent changes of -24.72% and -2.07%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. F is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, F is holding a Forward P/E ratio of 6.99. For comparison, its industry has an average Forward P/E of 10.04, which means F is trading at a discount to the group.
It is also worth noting that F currently has a PEG ratio of 1.32. 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 1.32 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 8, putting it in the top 3% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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