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Should Value Investors Buy Toyota Motor (TM) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Toyota Motor (TM - Free Report) . TM is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.03, while its industry has an average P/E of 11.24. Over the past year, TM's Forward P/E has been as high as 10.46 and as low as 7.05, with a median of 8.56.
TM is also sporting a PEG ratio of 0.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TM's PEG compares to its industry's average PEG of 0.66. Over the last 12 months, TM's PEG has been as high as 0.35 and as low as 0.28, with a median of 0.30.
Another valuation metric that we should highlight is TM's P/B ratio of 1.05. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.17. Over the past 12 months, TM's P/B has been as high as 1.14 and as low as 0.88, with a median of 1.01.
Value investors will likely look at more than just these metrics, but the above data helps show that Toyota Motor is likely undervalued currently. And when considering the strength of its earnings outlook, TM sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Toyota Motor (TM) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Toyota Motor (TM - Free Report) . TM is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.03, while its industry has an average P/E of 11.24. Over the past year, TM's Forward P/E has been as high as 10.46 and as low as 7.05, with a median of 8.56.
TM is also sporting a PEG ratio of 0.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TM's PEG compares to its industry's average PEG of 0.66. Over the last 12 months, TM's PEG has been as high as 0.35 and as low as 0.28, with a median of 0.30.
Another valuation metric that we should highlight is TM's P/B ratio of 1.05. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.17. Over the past 12 months, TM's P/B has been as high as 1.14 and as low as 0.88, with a median of 1.01.
Value investors will likely look at more than just these metrics, but the above data helps show that Toyota Motor is likely undervalued currently. And when considering the strength of its earnings outlook, TM sticks out as one of the market's strongest value stocks.