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Ford Motor Company (F) Outperforms Broader Market: What You Need to Know

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Ford Motor Company (F - Free Report) closed at $10.90 in the latest trading session, marking a +0.93% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.2%.

Coming into today, shares of the company had gained 0.75% in the past month. In that same time, the Auto-Tires-Trucks sector gained 1.96%, while the S&P 500 gained 1.54%.

The investment community will be paying close attention to the earnings performance of Ford Motor Company in its upcoming release. On that day, Ford Motor Company is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 28.21%. Meanwhile, our latest consensus estimate is calling for revenue of $41.2 billion, up 0.07% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.88 per share and a revenue of $171.86 billion, indicating changes of -6.47% and +3.54%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ford Motor Company. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Ford Motor Company currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Ford Motor Company is at present trading with a Forward P/E ratio of 5.74. Its industry sports an average Forward P/E of 13.36, so one might conclude that Ford Motor Company is trading at a discount comparatively.

It's also important to note that F currently trades at a PEG ratio of 0.78. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. F's industry had an average PEG ratio of 1.43 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 167, putting it in the bottom 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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