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

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In the latest trading session, Toyota Motor Corporation (TM - Free Report) closed at $139.05, marking a +1.07% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.15%.

Coming into today, shares of the company had lost 10.95% in the past month. In that same time, the Auto-Tires-Trucks sector lost 4.84%, while the S&P 500 lost 10.24%.

Investors will be hoping for strength from Toyota Motor Corporation as it approaches its next earnings release. In that report, analysts expect Toyota Motor Corporation to post earnings of $3.66 per share. This would mark a year-over-year decline of 10.51%. Our most recent consensus estimate is calling for quarterly revenue of $67.56 billion, down 1.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.19 per share and revenue of $274.2 billion. These totals would mark changes of -11.43% and -1.86%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Toyota Motor Corporation. 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.

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. The Zacks Consensus EPS estimate has moved 4.37% lower within the past month. Toyota Motor Corporation is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Toyota Motor Corporation is currently trading at a Forward P/E ratio of 8.5. Its industry sports an average Forward P/E of 7.5, so we one might conclude that Toyota Motor Corporation is trading at a premium comparatively.

Meanwhile, TM's PEG ratio is currently 1.08. 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 was holding an average PEG ratio of 0.56 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 148, which puts it in the bottom 42% 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.

To follow TM in the coming trading sessions, be sure to utilize Zacks.com.


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