Toyota Motor Corporation (TM) closed at $197.70 in the latest trading session, marking a -1.04% move from the prior day. This change lagged the S&P 500’s daily gain of 0.28%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.16%.
– Zacks Heading into today, shares of the company had gained 8.7% over the past month, outpacing the Auto-Tires-Trucks sector’s loss of 1.22% and the S&P 500’s loss of 5.39% in that time.
Toyota Motor Corporation will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.74, down 34.04% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $67.26 billion, down 13.82% from the year-ago period.
TM’s full-year Zacks Consensus Estimates are calling for earnings of $18.83 per share and revenue of $280.62 billion. These results would represent year-over-year changes of +25.62% and +9.1%, respectively.
Any recent changes to analyst estimates for Toyota Motor Corporation should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.95% higher within the past month. Toyota Motor Corporation is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Toyota Motor Corporation is holding a Forward P/E ratio of 10.61. This valuation marks a premium compared to its industry’s average Forward P/E of 10.56.
Also, we should mention that TM has a PEG ratio of 0.46. 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. Automotive – Foreign stocks are, on average, holding a PEG ratio of 0.39 based on yesterday’s closing prices.
The Automotive – Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 28% 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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