Yahoo Finance Should Value Investors Buy Ford Motor (F) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Ford Motor (F). F is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors should also note that F holds a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. F's industry currently sports an average PEG of 2.17. Within the past year, F's PEG has been as high as 2.58 and as low as 0.66, with a median of 1.54.
Finally, our model also underscores that F has a P/CF ratio of 4.83. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.85. Over the past 52 weeks, F's P/CF has been as high as 12.84 and as low as 2.51, with a median of 3.56.
These are just a handful of the figures considered in Ford Motor's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that F is an impressive value stock right now.
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Ford Motor Company (F) : Free Stock Analysis Report
