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Toyota Motor Corporation (TM) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Toyota Motor Corporation (TM) closed at $145.59, marking a +1.01% move from the previous day. The stock lagged the S&P 500's daily gain of 1.53%. Meanwhile, the Dow gained 1.19%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the company had lost 9.12% over the past month, lagging the Auto-Tires-Trucks sector's loss of 3.73% and the S&P 500's loss of 3.1% in that time.

Toyota Motor Corporation will be looking to display strength as it nears its next earnings release. In that report, analysts expect Toyota Motor Corporation to post earnings of $3.66 per share. This would mark a year-over-year decline of 10.51%. Meanwhile, our latest consensus estimate is calling for revenue of $67.56 billion, down 1.44% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.49 per share and revenue of $274.2 billion, which would represent changes of -9.79% and -1.86%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Toyota Motor Corporation. These revisions help to show the ever-changing nature 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 6.45% lower. Toyota Motor Corporation is currently a Zacks Rank #4 (Sell).

Investors should also note Toyota Motor Corporation's current valuation metrics, including its Forward P/E ratio of 8.74. This valuation marks a premium compared to its industry's average Forward P/E of 7.84.

We can also see that TM currently has a PEG ratio of 1.11. 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. TM's industry had an average PEG ratio of 1.11 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 152, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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