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Honda Motor (HMC) Gains But Lags Market: What You Should Know
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In the latest trading session, Honda Motor (HMC - Free Report) closed at $27.50, marking a +0.51% move from the previous day. This move lagged the S&P 500's daily gain of 1.78%. At the same time, the Dow added 1.61%, and the tech-heavy Nasdaq gained 0.95%.
Prior to today's trading, shares of the automaker had lost 5.69% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 15.74% and lagged the S&P 500's loss of 2.63% in that time.
Wall Street will be looking for positivity from Honda Motor as it approaches its next earnings report date. In that report, analysts expect Honda Motor to post earnings of $0.95 per share. This would mark a year-over-year decline of 39.87%. Our most recent consensus estimate is calling for quarterly revenue of $33 billion, down 8.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.50 per share and revenue of $132.3 billion, which would represent changes of -2.51% and +6.3%, respectively, from the prior year.
Any recent changes to analyst estimates for Honda Motor should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 4.53% higher. Honda Motor is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Honda Motor currently has a Forward P/E ratio of 7.82. This represents a discount compared to its industry's average Forward P/E of 9.76.
Meanwhile, HMC's PEG ratio is currently 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Foreign was holding an average PEG ratio of 0.35 at yesterday's closing price.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Honda Motor (HMC) Gains But Lags Market: What You Should Know
In the latest trading session, Honda Motor (HMC - Free Report) closed at $27.50, marking a +0.51% move from the previous day. This move lagged the S&P 500's daily gain of 1.78%. At the same time, the Dow added 1.61%, and the tech-heavy Nasdaq gained 0.95%.
Prior to today's trading, shares of the automaker had lost 5.69% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 15.74% and lagged the S&P 500's loss of 2.63% in that time.
Wall Street will be looking for positivity from Honda Motor as it approaches its next earnings report date. In that report, analysts expect Honda Motor to post earnings of $0.95 per share. This would mark a year-over-year decline of 39.87%. Our most recent consensus estimate is calling for quarterly revenue of $33 billion, down 8.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.50 per share and revenue of $132.3 billion, which would represent changes of -2.51% and +6.3%, respectively, from the prior year.
Any recent changes to analyst estimates for Honda Motor should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 4.53% higher. Honda Motor is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Honda Motor currently has a Forward P/E ratio of 7.82. This represents a discount compared to its industry's average Forward P/E of 9.76.
Meanwhile, HMC's PEG ratio is currently 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Foreign was holding an average PEG ratio of 0.35 at yesterday's closing price.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.