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Toyota Motor Corporation (TM) Gains As Market Dips: What You Should Know

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Toyota Motor Corporation (TM - Free Report) closed the most recent trading day at $173.30, moving +1.98% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.26%.

Heading into today, shares of the company had lost 2.61% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 14.98% and the S&P 500's loss of 8.27% in that time.

Wall Street will be looking for positivity from Toyota Motor Corporation as it approaches its next earnings report date. In that report, analysts expect Toyota Motor Corporation to post earnings of $2.40 per share. This would mark a year-over-year decline of 53.67%. Our most recent consensus estimate is calling for quarterly revenue of $68.2 billion, down 6.02% from the year-ago period.

Any recent changes to analyst estimates for Toyota Motor Corporation should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 8.16% lower. Toyota Motor Corporation is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Toyota Motor Corporation currently has a Forward P/E ratio of 9.22. This represents a premium compared to its industry's average Forward P/E of 7.21.

We can also see that TM currently has a PEG ratio of 0.41. 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 was holding an average PEG ratio of 0.41 at yesterday's closing price.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 17% 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.

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