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Toyota Motor Corporation (TM) Advances But Underperforms Market: Key Facts

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Toyota Motor Corporation (TM - Free Report) ended the recent trading session at $205.65, demonstrating a +0.17% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.85%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 1.53%.

The company's shares have seen a decrease of 5.44% over the last month, not keeping up with the Auto-Tires-Trucks sector's loss of 2.37% and the S&P 500's gain of 3.11%.

The investment community will be closely monitoring the performance of Toyota Motor Corporation in its forthcoming earnings report. On that day, Toyota Motor Corporation is projected to report earnings of $4.01 per share, which would represent a year-over-year decline of 43.12%. Our most recent consensus estimate is calling for quarterly revenue of $72.48 billion, down 5.69% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $22.07 per share and revenue of $319.48 billion, indicating changes of -12.94% and +2.37%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Toyota Motor Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 20.82% higher. Toyota Motor Corporation is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Toyota Motor Corporation has a Forward P/E ratio of 9.3 right now. This signifies a premium in comparison to the average Forward P/E of 7.06 for its industry.

Also, we should mention that TM has a PEG ratio of 0.35. 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. Automotive - Foreign stocks are, on average, holding a PEG ratio of 0.69 based on yesterday's closing prices.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 193, placing it within the bottom 24% of over 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.

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

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