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Toyota Motor Corporation (TM) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Toyota Motor Corporation (TM - Free Report) closed at $168.44, marking a +1.64% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.

Coming into today, shares of the company had lost 0.12% in the past month. In that same time, the Auto-Tires-Trucks sector gained 12.63%, while the S&P 500 gained 4.63%.

Toyota Motor Corporation will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.40, down 53.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $68.2 billion, down 6.02% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Toyota Motor Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 6.64% lower within the past month. Toyota Motor Corporation is currently a Zacks Rank #4 (Sell).

Digging into valuation, Toyota Motor Corporation currently has a Forward P/E ratio of 8.69. This represents a premium compared to its industry's average Forward P/E of 7.18.

Investors should also note that TM has a PEG ratio of 0.39 right now. 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 Automotive - Foreign industry currently had an average PEG ratio of 0.32 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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