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

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Ford (F - Free Report) closed at $9.55 in the latest trading session, marking a +1.06% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.56%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 1.43%.

Prior to today's trading, shares of the automaker had lost 0.63% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 0.8% and lagged the S&P 500's gain of 2.44% in that time.

Investors will be hoping for strength from F as it approaches its next earnings release, which is expected to be October 25, 2018. In that report, analysts expect F to post earnings of $0.33 per share. This would mark a year-over-year decline of 23.26%. Meanwhile, our latest consensus estimate is calling for revenue of $34.49 billion, up 2.5% from the prior-year quarter.

F's full-year Zacks Consensus Estimates are calling for earnings of $1.38 per share and revenue of $146.35 billion. These results would represent year-over-year changes of -22.47% and -1.47%, respectively.

It is also important to note the recent changes to analyst estimates for F. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. F currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, F currently has a Forward P/E ratio of 6.84. This represents a discount compared to its industry's average Forward P/E of 11.56.

It is also worth noting that F currently has a PEG ratio of 1.29. 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 industry currently had an average PEG ratio of 1.29 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 175, putting it in the bottom 31% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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