Back to top

Image: Bigstock

Toyota Motor Corporation (TM) Ascends But Remains Behind Market: Some Facts to Note

Read MoreHide Full Article

Toyota Motor Corporation (TM - Free Report) closed the latest trading day at $180.86, indicating a +0.51% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.03%. Elsewhere, the Dow gained 0.87%, while the tech-heavy Nasdaq added 1.26%.

Shares of the company witnessed a loss of 2.33% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 2.94% and the S&P 500's gain of 3.01%.

Analysts and investors alike will be keeping a close eye on the performance of Toyota Motor Corporation in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.66, showcasing a 3.17% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $73.72 billion, reflecting a 6.59% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.31 per share and revenue of $305.05 billion. These totals would mark changes of +45.41% and +11.03%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Toyota Motor Corporation possesses a Zacks Rank of #2 (Buy).

With respect to valuation, Toyota Motor Corporation is currently being traded at a Forward P/E ratio of 9.32. This represents a premium compared to its industry's average Forward P/E of 6.66.

One should further note that TM currently holds a PEG ratio of 0.38. 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 Automotive - Foreign industry currently had an average PEG ratio of 0.37 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Toyota Motor Corporation (TM) - free report >>

Published in