Is Toyota Motor Corporation (TM) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Toyota Motor Corporation (TM). TM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 9.31 right now. For comparison, its industry sports an average P/E of 16.96. Over the past 52 weeks, TM's Forward P/E has been as high as 14.97 and as low as 7.05, with a median of 12.26.
TM is also sporting a PEG ratio of 0.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TM's PEG compares to its industry's average PEG of 1.09. TM's PEG has been as high as 4.69 and as low as 0.82, with a median of 1.73, all within the past year.
These are only a few of the key metrics included in Toyota Motor Corporation's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TM looks like an impressive value stock at the moment.
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