Honda Motor (HMC) Gains But Lags Market: What You Should Know
In the latest market close, Honda Motor (HMC) reached $33.77, with a +0.84% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.25%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 1.3%.
The the stock of automaker has risen by 9.44% in the past month, leading the Auto-Tires-Trucks sector's loss of 11.14% and the S&P 500's gain of 1.58%.
Investors will be eagerly watching for the performance of Honda Motor in its upcoming earnings disclosure. On that day, Honda Motor is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.68 billion, up 19.76% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.16 per share and a revenue of $143.49 billion, signifying shifts of +37.29% and +14.79%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Honda Motor. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 6.23% rise in the Zacks Consensus EPS estimate. Honda Motor is holding a Zacks Rank of #1 (Strong Buy) right now.
From a valuation perspective, Honda Motor is currently exchanging hands at a Forward P/E ratio of 8.05. This denotes a premium relative to the industry's average Forward P/E of 6.29.
We can additionally observe that HMC currently boasts a PEG ratio of 0.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Foreign industry had an average PEG ratio of 0.32 as trading concluded yesterday.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 26% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
