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Ford Motor Company (F) Outpaces Stock Market Gains: What You Should Know

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Zacks Equity Research
·2 min read
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Ford Motor Company (F) closed at $11.37 in the latest trading session, marking a +1.52% move from the prior day. This change outpaced the S&P 500's 1.09% gain on the day. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 1.23%.

Investors will be hoping for strength from F as it approaches its next earnings release, which is expected to be February 9, 2021. The company is expected to report EPS of -$0.07, down 158.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.89 billion, down 10.32% from the year-ago period.

Investors should also note any recent changes to analyst estimates for F. Recent revisions tend to reflect the latest 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 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. The Zacks Consensus EPS estimate has moved 11.7% higher within the past month. F is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, F currently has a Forward P/E ratio of 11.35. This represents a discount compared to its industry's average Forward P/E of 16.78.

Meanwhile, F's PEG ratio is currently 1.46. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.98 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 113, which puts it in the top 45% 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.

To follow F in the coming trading sessions, be sure to utilize Zacks.com.


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