In the latest trading session, Toyota Motor Corporation (TM) closed at $201.90, marking a +0.77% move from the previous day. This change lagged the S&P 500’s 0.92% gain on the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.54%.
Prior to today’s trading, shares of the company had gained 13.76% over the past month. This has outpaced the Auto-Tires-Trucks sector’s loss of 1.05% and the S&P 500’s loss of 0.85% 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 $3.76, down 33.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $69.27 billion, down 11.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $18.65 per share and revenue of $285.79 billion. These totals would mark changes of +24.42% and +11.11%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Toyota Motor Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Toyota Motor Corporation is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Toyota Motor Corporation’s current valuation metrics, including its Forward P/E ratio of 10.74. This represents a premium compared to its industry’s average Forward P/E of 10.69.
It is also worth noting that TM currently has a PEG ratio of 0.47. 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 72, which puts it in the top 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.