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

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In the latest trading session, Ford (F - Free Report) closed at $9.53, marking a +1.6% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Prior to today's trading, shares of the automaker had gained 2.51% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 5.46% and the S&P 500's loss of 6.76% in that time.

Investors will be hoping for strength from F as it approaches its next earnings release, which is expected to be January 23, 2019. In that report, analysts expect F to post earnings of $0.33 per share. This would mark a year-over-year decline of 15.38%. Meanwhile, our latest consensus estimate is calling for revenue of $36.25 billion, down 12.22% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.34 per share and revenue of $145.46 billion. These totals would mark changes of -24.72% and -2.07%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for F. These revisions help to show the ever-changing nature of 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.9% lower within the past month. F currently has a Zacks Rank of #3 (Hold).

Digging into valuation, F currently has a Forward P/E ratio of 6.99. This represents a discount compared to its industry's average Forward P/E of 9.95.

Meanwhile, F's PEG ratio is currently 1.32. 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. F's industry had an average PEG ratio of 1.32 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 14, putting it in the top 5% 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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