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Ford (F) Dips More Than Broader Markets: What You Should Know

Ford (F) closed at $9.02 in the latest trading session, marking a -1.74% move from the prior day. This change lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.42%.

Heading into today, shares of the automaker had lost 4.38% over the past month, lagging the Auto-Tires-Trucks sector's gain of 0.55% and the S&P 500's loss of 1.1% in that time.

F will be looking to display strength as it nears its next earnings release, which is expected to be January 23, 2019. The company is expected to report EPS of $0.33, down 15.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.25 billion, down 12.22% from the year-ago period.

F's full-year Zacks Consensus Estimates are calling for earnings of $1.36 per share and revenue of $146.87 billion. These results would represent year-over-year changes of -23.6% and -1.12%, respectively.

Investors should also note any recent changes to analyst estimates for F. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 1.06% higher within the past month. F is currently a Zacks Rank #3 (Hold).

Digging into valuation, F currently has a Forward P/E ratio of 6.77. Its industry sports an average Forward P/E of 9.77, so we one might conclude that F is trading at a discount comparatively.

We can also see that F currently has a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic industry currently had an average PEG ratio of 1.28 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 20, putting it in the top 8% 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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