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Toyota Motor Corporation (TM) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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The latest trading session saw Toyota Motor Corporation (TM - Free Report) ending at $242.97, denoting a -1.63% adjustment from its last day's close. This change lagged the S&P 500's 1.46% loss on the day. Elsewhere, the Dow saw a downswing of 1.24%, while the tech-heavy Nasdaq depreciated by 1.63%.

Shares of the company have appreciated by 6.94% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 0.46% and the S&P 500's gain of 1.6%.

The upcoming earnings release of Toyota Motor Corporation will be of great interest to investors. The company is predicted to post an EPS of $2.91, indicating a 5.21% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $67.21 billion, indicating an 8.28% decline compared to the corresponding quarter of the prior year.

It is also important to note the recent changes to analyst estimates for Toyota Motor Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained stagnant. Toyota Motor Corporation currently has a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Toyota Motor Corporation is currently being traded at a Forward P/E ratio of 10.66. This signifies a premium in comparison to the average Forward P/E of 6.22 for its industry.

Also, we should mention that TM has a PEG ratio of 0.37. 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 average PEG ratio for the Automotive - Foreign industry stood at 0.37 at the close of the market yesterday.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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