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Should Value Investors Buy Ford Motor (F) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Ford Motor (F - Free Report) is a stock many investors are watching right now. F is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We also note that F holds a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. F's industry has an average PEG of 2.57 right now. Over the last 12 months, F's PEG has been as high as 1.62 and as low as 0.72, with a median of 1.09.

Finally, we should also recognize that F has a P/CF ratio of 4.50. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.85. Within the past 12 months, F's P/CF has been as high as 11.02 and as low as 3.10, with a median of 4.63.

These are just a handful of the figures considered in Ford Motor's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that F is an impressive value stock right now.


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