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Why Ford Motor Company (F) Dipped More Than Broader Market Today

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In the latest market close, Ford Motor Company (F - Free Report) reached $9.29, with a -1.9% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 1.59% for the day. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 2.78%.

The the stock of company has fallen by 7.25% in the past month, leading the Auto-Tires-Trucks sector's loss of 16.95% and undershooting the S&P 500's loss of 2.23%.

The investment community will be closely monitoring the performance of Ford Motor Company in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.07, marking an 85.71% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $35.51 billion, indicating a 10.99% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.42 per share and revenue of $166.15 billion, which would represent changes of -22.83% and -3.78%, respectively, from the prior year.

Any recent changes to analyst estimates for Ford Motor Company should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 shifted 16.74% downward. Ford Motor Company presently features a Zacks Rank of #4 (Sell).

In terms of valuation, Ford Motor Company is currently trading at a Forward P/E ratio of 6.69. This indicates a discount in contrast to its industry's Forward P/E of 13.47.

We can additionally observe that F currently boasts a PEG ratio of 0.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. F's industry had an average PEG ratio of 1.12 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 163, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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