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Honda Motor (HMC) Stock Dips While Market Gains: Key Facts
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In the latest market close, Honda Motor (HMC - Free Report) reached $32.36, with a -1.01% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.23%. On the other hand, the Dow registered a gain of 1.06%, and the technology-centric Nasdaq increased by 1.7%.
Heading into today, shares of the automaker had gained 6.97% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 6.49% and the S&P 500's gain of 0.94% in that time.
The investment community will be closely monitoring the performance of Honda Motor in its forthcoming earnings report. The company is expected to report EPS of $0.85, down 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $37.68 billion, up 19.76% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.09 per share and a revenue of $143.49 billion, indicating changes of +34.98% and +14.79%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Honda Motor. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.68% rise in the Zacks Consensus EPS estimate. Currently, Honda Motor is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Honda Motor is presently being traded at a Forward P/E ratio of 7.99. This represents a premium compared to its industry's average Forward P/E of 7.09.
Also, we should mention that HMC has a PEG ratio of 0.38. 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. By the end of yesterday's trading, the Automotive - Foreign industry had an average PEG ratio of 0.38.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Honda Motor (HMC) Stock Dips While Market Gains: Key Facts
In the latest market close, Honda Motor (HMC - Free Report) reached $32.36, with a -1.01% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.23%. On the other hand, the Dow registered a gain of 1.06%, and the technology-centric Nasdaq increased by 1.7%.
Heading into today, shares of the automaker had gained 6.97% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 6.49% and the S&P 500's gain of 0.94% in that time.
The investment community will be closely monitoring the performance of Honda Motor in its forthcoming earnings report. The company is expected to report EPS of $0.85, down 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $37.68 billion, up 19.76% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.09 per share and a revenue of $143.49 billion, indicating changes of +34.98% and +14.79%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Honda Motor. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.68% rise in the Zacks Consensus EPS estimate. Currently, Honda Motor is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Honda Motor is presently being traded at a Forward P/E ratio of 7.99. This represents a premium compared to its industry's average Forward P/E of 7.09.
Also, we should mention that HMC has a PEG ratio of 0.38. 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. By the end of yesterday's trading, the Automotive - Foreign industry had an average PEG ratio of 0.38.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.