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Honda Motor (HMC) closed at $29.92 in the latest trading session, marking a -1.77% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%.
Heading into today, shares of the automaker had lost 0.2% over the past month, lagging the Auto-Tires-Trucks sector's gain of 7.57% and the S&P 500's gain of 4.28% in that time.
HMC will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2021. In that report, analysts expect HMC to post earnings of $0.74 per share. This would mark a year-over-year decline of 43.51%. Our most recent consensus estimate is calling for quarterly revenue of $31.19 billion, down 9.36% from the year-ago period.
HMC's full-year Zacks Consensus Estimates are calling for earnings of $3.43 per share and revenue of $132.63 billion. These results would represent year-over-year changes of -4.46% and +6.56%, respectively.
Investors should also note any recent changes to analyst estimates for HMC. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection has moved 12.27% lower. HMC is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, HMC is holding a Forward P/E ratio of 8.87. For comparison, its industry has an average Forward P/E of 11.59, which means HMC is trading at a discount to the group.
Also, we should mention that HMC has a PEG ratio of 0.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HMC's industry had an average PEG ratio of 0.45 as of yesterday's close.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 13% 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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Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
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