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Honda Motor (HMC) Exceeds Market Returns: Some Facts to Consider
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Honda Motor (HMC - Free Report) closed at $29.81 in the latest trading session, marking a +1.26% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.45%.
Investors will be eagerly watching for the performance of Honda Motor in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.78, showcasing a 23.53% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $37.68 billion, indicating a 19.76% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4 per share and revenue of $143.49 billion, indicating changes of +32.01% and +14.79%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Honda Motor. 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 shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 3.32% lower. Honda Motor currently has a Zacks Rank of #3 (Hold).
Investors should also note Honda Motor's current valuation metrics, including its Forward P/E ratio of 7.37. For comparison, its industry has an average Forward P/E of 6.4, which means Honda Motor is trading at a premium to the group.
Also, we should mention that HMC has a PEG ratio of 0.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Automotive - Foreign industry stood at 0.39 at the close of the market yesterday.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow HMC in the coming trading sessions, be sure to utilize Zacks.com.
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Honda Motor (HMC) Exceeds Market Returns: Some Facts to Consider
Honda Motor (HMC - Free Report) closed at $29.81 in the latest trading session, marking a +1.26% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.45%.
Investors will be eagerly watching for the performance of Honda Motor in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.78, showcasing a 23.53% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $37.68 billion, indicating a 19.76% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4 per share and revenue of $143.49 billion, indicating changes of +32.01% and +14.79%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Honda Motor. 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 shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 3.32% lower. Honda Motor currently has a Zacks Rank of #3 (Hold).
Investors should also note Honda Motor's current valuation metrics, including its Forward P/E ratio of 7.37. For comparison, its industry has an average Forward P/E of 6.4, which means Honda Motor is trading at a premium to the group.
Also, we should mention that HMC has a PEG ratio of 0.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Automotive - Foreign industry stood at 0.39 at the close of the market yesterday.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow HMC in the coming trading sessions, be sure to utilize Zacks.com.