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

Zacks Equity Research
·3-min read

Ford Motor Company (F) closed at $11.19 in the latest trading session, marking a -0.89% move from the prior day. This move lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Investors will be hoping for strength from F as it approaches its next earnings release, which is expected to be February 4, 2021. On that day, F is projected to report earnings of -$0.08 per share, which would represent a year-over-year decline of 166.67%. Meanwhile, our latest consensus estimate is calling for revenue of $32.89 billion, down 10.32% from the prior-year quarter.

Any recent changes to analyst estimates for F should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.55% higher. F is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, F is currently trading at a Forward P/E ratio of 12.13. Its industry sports an average Forward P/E of 17.65, so we one might conclude that F is trading at a discount comparatively.

Also, we should mention that F has a PEG ratio of 1.56. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.

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


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