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Toyota Motor Corporation (TM) Outpaces Stock Market Gains: What You Should Know

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Toyota Motor Corporation (TM - Free Report) closed the most recent trading day at $181.47, moving +0.72% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.2%.

Prior to today's trading, shares of the company had gained 16.07% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 4.95% and the S&P 500's gain of 1.06% in that time.

Investors will be hoping for strength from TM as it approaches its next earnings release. In that report, analysts expect TM to post earnings of $3.43 per share. This would mark year-over-year growth of 223.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $62.37 billion, up 45.79% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.58 per share and revenue of $282.58 billion, which would represent changes of +10.61% and +9.86%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TM. 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 company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.19% higher. TM is currently a Zacks Rank #3 (Hold).

In terms of valuation, TM is currently trading at a Forward P/E ratio of 10.87. For comparison, its industry has an average Forward P/E of 11.06, which means TM is trading at a discount to the group.

We can also see that TM currently has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Foreign industry currently had an average PEG ratio of 0.82 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 TM in the coming trading sessions, be sure to utilize Zacks.com.


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