Ford (F) Dips More Than Broader Markets: What You Should Know
Ford (F) closed at $9.98 in the latest trading session, marking a -0.8% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.52%.
Prior to today's trading, shares of the automaker had lost 3.27% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 2.3% and the S&P 500's gain of 3.12% in that time.
Investors will be hoping for strength from F as it approaches its next earnings release. In that report, analysts expect F to post earnings of $0.33 per share. This would mark year-over-year growth of 22.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.69 billion, down 0.6% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.38 per share and revenue of $146.35 billion, which would represent changes of +6.15% and -1.31%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for F. These recent revisions tend to reflect the evolving nature of short-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 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. Within the past 30 days, our consensus EPS projection remained stagnant. F is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that F has a Forward P/E ratio of 7.3 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.93.
It is also worth noting that F currently has a PEG ratio of 1. 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 1.24 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.