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Honda Motor (HMC) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Honda Motor (HMC) closed at $33.14, marking a +1.22% move from the previous day. This change outpaced the S&P 500's 0.2% gain on the day.

Prior to today's trading, shares of the automaker had gained 7.31% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 4.95% and the S&P 500's gain of 1.06% in that time.

Investors will be hoping for strength from HMC as it approaches its next earnings release. On that day, HMC is projected to report earnings of $0.95 per share, which would represent year-over-year growth of 315.91%. Our most recent consensus estimate is calling for quarterly revenue of $35.08 billion, up 77.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.50 per share and revenue of $139.83 billion, which would represent changes of -2.51% and +12.34%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for HMC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.69% lower. HMC currently has a Zacks Rank of #3 (Hold).

Digging into valuation, HMC currently has a Forward P/E ratio of 9.35. For comparison, its industry has an average Forward P/E of 11.06, which means HMC is trading at a discount to the group.

Meanwhile, HMC's PEG ratio is currently 0.8. 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. Automotive - Foreign stocks are, on average, holding a PEG ratio of 0.82 based on yesterday's closing prices.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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