U.S. Markets closed

Ford (F) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Ford (F) closed the most recent trading day at $10.42, moving -0.67% from the previous trading session. This change lagged the S&P 500's 0.02% gain on the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.17%.

Coming into today, shares of the automaker had gained 4.27% in the past month. In that same time, the Auto-Tires-Trucks sector gained 4.7%, while the S&P 500 gained 4.82%.

Investors will be hoping for strength from F as it approaches its next earnings release, which is expected to be July 24, 2019. On that day, F is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 22.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.14 billion, down 2.12% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.39 per share and revenue of $147.42 billion. These totals would mark changes of +6.92% and -0.59%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for F. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.73% higher. F is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, F is holding a Forward P/E ratio of 7.56. Its industry sports an average Forward P/E of 11.44, so we one might conclude that F is trading at a discount comparatively.

Meanwhile, F's PEG ratio is currently 1.04. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ford Motor Company (F) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.