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Toyota Motor Corporation (TM) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Toyota Motor Corporation (TM - Free Report) closed at $150.59, marking a -1.08% move from the previous day. This move lagged the S&P 500's daily loss of 0.67%.

Investors will be hoping for strength from TM as it approaches its next earnings release. On that day, TM is projected to report earnings of $3.45 per share, which would represent year-over-year growth of 666.67%. Meanwhile, our latest consensus estimate is calling for revenue of $70.78 billion, up 8.57% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for TM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 2.01% lower within the past month. TM is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that TM has a Forward P/E ratio of 9.57 right now. For comparison, its industry has an average Forward P/E of 9.93, which means TM is trading at a discount to the group.

It is also worth noting that TM currently has a PEG ratio of 0.82. 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. TM's industry had an average PEG ratio of 0.8 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 88, which puts it in the top 35% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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