Toyota Motor Corporation (TM) Outpaces Stock Market Gains: What You Should Know
Toyota Motor Corporation (TM) closed the most recent trading day at $174.89, moving +1.67% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.83% for the day. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 1.02%.
Shares of the company have depreciated by 8.49% over the course of the past month, underperforming the Auto-Tires-Trucks sector's loss of 3.7%, and the S&P 500's gain of 4.99%.
Market participants will be closely following the financial results of Toyota Motor Corporation in its upcoming release. It is anticipated that the company will report an EPS of $4.67, marking a 26.46% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $79.41 billion, indicating a 4.57% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.62 per share and revenue of $339.36 billion. These totals would mark changes of -21.14% and +7.63%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Toyota Motor Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Toyota Motor Corporation currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Toyota Motor Corporation has a Forward P/E ratio of 9.24 right now. This expresses a discount compared to the average Forward P/E of 9.68 of its industry.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Story ContinuesEnsure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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