Ford (F) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Ford (F) closed at $8.64, marking a +1.17% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.95%.
Prior to today's trading, shares of the automaker had lost 10.48% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 2.69% and the S&P 500's loss of 4.97% in that time.
Wall Street will be looking for positivity from F as it approaches its next earnings report date. This 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 $1.36 per share and revenue of $146.87 billion, which would represent changes of -23.6% and -1.12%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for F. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. F is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, F currently has a Forward P/E ratio of 6.3. This valuation marks a discount compared to its industry's average Forward P/E of 9.91.
We can also see that F currently has a PEG ratio of 1.19. 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 1.19 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 18, putting 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.
To follow F in the coming trading sessions, be sure to utilize Zacks.com.
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