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Honda Motor (HMC) Gains But Lags Market: What You Should Know
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Honda Motor (HMC - Free Report) closed at $29.94 in the latest trading session, marking a +0.3% move from the prior day. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 9.29%.
Heading into today, shares of the automaker had lost 3.86% over the past month, lagging the Auto-Tires-Trucks sector's gain of 24.67% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from Honda Motor as it approaches its next earnings release. The company is expected to report EPS of $0.89, up 32.84% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.57 billion, up 13.56% from the year-ago period.
HMC's full-year Zacks Consensus Estimates are calling for earnings of $3.92 per share and revenue of $145.6 billion. These results would represent year-over-year changes of +29.37% and +16.48%, respectively.
It is also important to note the recent changes to analyst estimates for Honda Motor. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.75% lower within the past month. Honda Motor is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Honda Motor currently has a Forward P/E ratio of 7.61. Its industry sports an average Forward P/E of 6.57, so we one might conclude that Honda Motor is trading at a premium comparatively.
It is also worth noting that HMC currently has a PEG ratio of 0.53. 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. The Automotive - Foreign was holding an average PEG ratio of 0.62 at yesterday's closing price.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 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.
To follow HMC in the coming trading sessions, be sure to utilize Zacks.com.
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Honda Motor (HMC) Gains But Lags Market: What You Should Know
Honda Motor (HMC - Free Report) closed at $29.94 in the latest trading session, marking a +0.3% move from the prior day. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 9.29%.
Heading into today, shares of the automaker had lost 3.86% over the past month, lagging the Auto-Tires-Trucks sector's gain of 24.67% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from Honda Motor as it approaches its next earnings release. The company is expected to report EPS of $0.89, up 32.84% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.57 billion, up 13.56% from the year-ago period.
HMC's full-year Zacks Consensus Estimates are calling for earnings of $3.92 per share and revenue of $145.6 billion. These results would represent year-over-year changes of +29.37% and +16.48%, respectively.
It is also important to note the recent changes to analyst estimates for Honda Motor. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.75% lower within the past month. Honda Motor is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Honda Motor currently has a Forward P/E ratio of 7.61. Its industry sports an average Forward P/E of 6.57, so we one might conclude that Honda Motor is trading at a premium comparatively.
It is also worth noting that HMC currently has a PEG ratio of 0.53. 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. The Automotive - Foreign was holding an average PEG ratio of 0.62 at yesterday's closing price.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 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.
To follow HMC in the coming trading sessions, be sure to utilize Zacks.com.