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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 $165.70, moving +0.08% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.12%.

Prior to today's trading, shares of the company had gained 5.33% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 21.24% and outpaced the S&P 500's gain of 5.14% in that time.

Investors will be hoping for strength from Toyota Motor Corporation as it approaches its next earnings release. On that day, Toyota Motor Corporation is projected to report earnings of $3.92 per share, which would represent a year-over-year decline of 5.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $69.98 billion, up 6.77% from the year-ago period.

TM's full-year Zacks Consensus Estimates are calling for earnings of $16.73 per share and revenue of $304 billion. These results would represent year-over-year changes of +25.98% and +10.65%, respectively.

Investors might also notice recent changes to analyst estimates for Toyota Motor Corporation. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.19% higher. Toyota Motor Corporation is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Toyota Motor Corporation currently has a Forward P/E ratio of 9.89. For comparison, its industry has an average Forward P/E of 6.69, which means Toyota Motor Corporation is trading at a premium to the group.

Investors should also note that TM has a PEG ratio of 0.59 right now. 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 0.54 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 22, which puts it in the top 9% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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