Honda Motor (HMC) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Honda Motor (HMC) reached $33.53, with a -0.71% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.07%. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq appreciated by 1.74%.
Prior to today's trading, shares of the automaker had gained 8.94% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 11.15% and the S&P 500's gain of 2.93% in that time.
The investment community will be paying close attention to the earnings performance of Honda Motor in its upcoming release. The company is expected to report EPS of $0.85, down 16.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.68 billion, up 19.76% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.16 per share and a revenue of $143.49 billion, indicating changes of +37.29% and +14.79%, respectively, from the former year.
Investors should also note any 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate has moved 6.23% higher within the past month. Honda Motor currently has a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Honda Motor is at present trading with a Forward P/E ratio of 8.12. This denotes a premium relative to the industry's average Forward P/E of 6.4.
Meanwhile, HMC's PEG ratio is currently 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Automotive - Foreign industry stood at 0.33 at the close of the market yesterday.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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
