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Toyota Motor Corporation (TM) Laps the Stock Market: Here's Why

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In the latest close session, Toyota Motor Corporation (TM - Free Report) was up +1.35% at $194.33. The stock's performance was ahead of the S&P 500's daily gain of 0.4%. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.66%.

Heading into today, shares of the company had lost 3.54% over the past month, lagging the Auto-Tires-Trucks sector's gain of 4.7% and the S&P 500's gain of 1.02%.

Analysts and investors alike will be keeping a close eye on the performance of Toyota Motor Corporation in its upcoming earnings disclosure.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.15 per share and a revenue of $331.26 billion, indicating changes of -23.13% and +5.06%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Toyota Motor Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Toyota Motor Corporation is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Toyota Motor Corporation is currently exchanging hands at a Forward P/E ratio of 10.57. This expresses a discount compared to the average Forward P/E of 12.03 of its industry.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 206, finds itself in the bottom 17% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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