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Toyota Motor Corporation (TM) Gains But Lags Market: What You Should Know

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Toyota Motor Corporation (TM - Free Report) closed at $182.42 in the latest trading session, marking a +0.02% move from the prior day. This change lagged the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.

Prior to today's trading, shares of the company had gained 8.53% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 1.15% and the S&P 500's loss of 2.84% in that time.

Toyota Motor Corporation will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.34, up 45.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $72.69 billion, up 8.88% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.90 per share and revenue of $303.73 billion, which would represent changes of +27.26% and +11.96%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Toyota Motor Corporation. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant within the past month. Toyota Motor Corporation is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Toyota Motor Corporation has a Forward P/E ratio of 10.79 right now. This valuation marks a premium compared to its industry's average Forward P/E of 6.84.

It is also worth noting that TM 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 industry currently had an average PEG ratio of 0.55 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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 TM in the coming trading sessions, be sure to utilize Zacks.com.


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