While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Ford (F) is a stock many investors are watching right now. F is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.46, which compares to its industry's average of 9.61. Over the last 12 months, F's Forward P/E has been as high as 8.44 and as low as 5.67, with a median of 7.11.
We also note that F holds a PEG ratio of 1.02. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. F's industry currently sports an average PEG of 1.12. Over the past 52 weeks, F's PEG has been as high as 1.43 and as low as 0.68, with a median of 0.89.
Another notable valuation metric for F is its P/B ratio of 1.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.28. Within the past 52 weeks, F's P/B has been as high as 1.32 and as low as 0.83, with a median of 1.02.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. F has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.74.
Finally, our model also underscores that F has a P/CF ratio of 3.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.13. Over the past year, F's P/CF has been as high as 3.67 and as low as 2.07, with a median of 2.76.
Value investors will likely look at more than just these metrics, but the above data helps show that Ford is likely undervalued currently. And when considering the strength of its earnings outlook, F sticks out at as one of the market's strongest value stocks.
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Ford Motor Company (F) : Free Stock Analysis Report
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