Honda Motor (HMC) Falls More Steeply Than Broader Market: What Investors Need to Know
The most recent trading session ended with Honda Motor (HMC) standing at $37.28, reflecting a -1.06% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.31%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 0.27%.
The automaker's shares have seen an increase of 5.19% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 1.25% and the S&P 500's gain of 3.05%.
The investment community will be paying close attention to the earnings performance of Honda Motor in its upcoming release. The company's upcoming EPS is projected at $0.41, signifying a 19.61% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.96 billion, up 14.5% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.19 per share and a revenue of $142.66 billion, representing changes of +38.28% and +14.12%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Honda Motor. Such recent modifications usually signify the changing landscape of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.53% decrease. Honda Motor is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Honda Motor is currently exchanging hands at a Forward P/E ratio of 8.99. This represents a premium compared to its industry's average Forward P/E of 6.15.
One should further note that HMC currently holds a PEG ratio of 0.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Foreign was holding an average PEG ratio of 0.39 at yesterday's closing price.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 29% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
