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Honda Motor (HMC) Rises But Trails Market: What Investors Should Know
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The most recent trading session ended with Honda Motor (HMC - Free Report) standing at $30.75, reflecting a +0.49% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.65%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.48%.
The automaker's shares have seen a decrease of 8.87% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 13.49% and falling behind the S&P 500's loss of 2.79%.
Investors will be eagerly watching for the performance of Honda Motor in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.69, marking a 13.75% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $32.12 billion, reflecting a 4.19% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.92 per share and a revenue of $134.63 billion, demonstrating changes of +29.37% and +7.7%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Honda Motor. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.26% upward. Honda Motor presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Honda Motor is presently trading at a Forward P/E ratio of 7.81. This denotes a premium relative to the industry's average Forward P/E of 6.18.
It's also important to note that HMC currently trades at a PEG ratio of 0.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Foreign was holding an average PEG ratio of 0.44 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 43, putting it in the top 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Honda Motor (HMC) Rises But Trails Market: What Investors Should Know
The most recent trading session ended with Honda Motor (HMC - Free Report) standing at $30.75, reflecting a +0.49% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.65%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.48%.
The automaker's shares have seen a decrease of 8.87% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 13.49% and falling behind the S&P 500's loss of 2.79%.
Investors will be eagerly watching for the performance of Honda Motor in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.69, marking a 13.75% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $32.12 billion, reflecting a 4.19% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.92 per share and a revenue of $134.63 billion, demonstrating changes of +29.37% and +7.7%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Honda Motor. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.26% upward. Honda Motor presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Honda Motor is presently trading at a Forward P/E ratio of 7.81. This denotes a premium relative to the industry's average Forward P/E of 6.18.
It's also important to note that HMC currently trades at a PEG ratio of 0.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Foreign was holding an average PEG ratio of 0.44 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 43, putting it in the top 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.