Why the Market Dipped But Toyota Motor Corporation (TM) Gained Today
The latest trading session saw Toyota Motor Corporation (TM) ending at $253.72, denoting a +0.52% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.42%.
Prior to today's trading, shares of the company had gained 6% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 0.04% and the S&P 500's gain of 2.67% in that time.
The investment community will be paying close attention to the earnings performance of Toyota Motor Corporation in its upcoming release. The company is predicted to post an EPS of $2.91, indicating a 5.21% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $67.21 billion, down 8.28% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $23.06 per share and revenue of $302.22 billion, which would represent changes of +73.64% and +10%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Toyota Motor Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.55% increase. Toyota Motor Corporation currently has a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Toyota Motor Corporation is at present trading with a Forward P/E ratio of 10.95. For comparison, its industry has an average Forward P/E of 5.96, which means Toyota Motor Corporation is trading at a premium to the group.
Meanwhile, TM'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. As of the close of trade yesterday, the Automotive - Foreign industry held an average PEG ratio of 0.39.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 44% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Toyota Motor Corporation (TM) : Free Stock Analysis Report
