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

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Ford Motor Company (F - Free Report) closed at $14.20 in the latest trading session, marking a +0.5% move from the prior day. This change outpaced the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.

Heading into today, shares of the company had gained 25.6% over the past month, lagging the Auto-Tires-Trucks sector's gain of 26.58% and outpacing the S&P 500's gain of 6.1% in that time.

Wall Street will be looking for positivity from Ford Motor Company as it approaches its next earnings report date. In that report, analysts expect Ford Motor Company to post earnings of $0.46 per share. This would mark a year-over-year decline of 32.35%. Our most recent consensus estimate is calling for quarterly revenue of $39.99 billion, up 5.5% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.74 per share and revenue of $160.22 billion, which would represent changes of -7.45% and +7.52%, respectively, from the prior year.

Any recent changes to analyst estimates for Ford Motor Company should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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 5.29% higher. Ford Motor Company is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Ford Motor Company currently has a Forward P/E ratio of 8.14. For comparison, its industry has an average Forward P/E of 11, which means Ford Motor Company is trading at a discount to the group.

It is also worth noting that F currently has a PEG ratio of 1.31. 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 was holding an average PEG ratio of 1.3 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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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