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Toyota Motor Corporation (TM) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with Toyota Motor Corporation (TM - Free Report) standing at $186.27, reflecting a -0.13% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 0.22%.

The the stock of company has risen by 2.81% in the past month, leading the Auto-Tires-Trucks sector's loss of 1.54% and the S&P 500's gain of 2.69%.

Market participants will be closely following the financial results of Toyota Motor Corporation in its upcoming release. In that report, analysts expect Toyota Motor Corporation to post earnings of $4.36 per share. This would mark a year-over-year decline of 35.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $78.36 billion, down 3.91% from the year-ago period.

TM's full-year Zacks Consensus Estimates are calling for earnings of $19.90 per share and revenue of $307.28 billion. These results would represent year-over-year changes of -21.5% and -1.54%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Toyota Motor Corporation. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 3.16% lower. Toyota Motor Corporation is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, Toyota Motor Corporation is holding a Forward P/E ratio of 9.37. This valuation marks a premium compared to its industry's average Forward P/E of 6.77.

Also, we should mention that TM has a PEG ratio of 0.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Automotive - Foreign industry stood at 0.79 at the close of the market yesterday.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 218, this industry ranks in the bottom 14% of all industries, numbering over 250.

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.

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


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