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Toyota Motor Corporation (TM) Increases Yet Falls Behind Market: What Investors Need to Know

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In the latest trading session, Toyota Motor Corporation (TM - Free Report) closed at $174.12, marking a +0.18% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.93%.

The the stock of company has fallen by 5.97% in the past month, leading the Auto-Tires-Trucks sector's loss of 8.5% and undershooting the S&P 500's loss of 2.29%.

The investment community will be closely monitoring the performance of Toyota Motor Corporation in its forthcoming earnings report. The company's upcoming EPS is projected at $3.34, signifying a 45.22% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $72.69 billion, indicating an 8.88% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $16.94 per share and revenue of $303.73 billion, which would represent changes of +27.56% and +10.55%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Toyota Motor Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.26% increase. At present, Toyota Motor Corporation boasts a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Toyota Motor Corporation is at present trading with a Forward P/E ratio of 10.26. This denotes a premium relative to the industry's average Forward P/E of 6.28.

We can additionally observe that TM currently boasts a PEG ratio of 0.47. 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. Automotive - Foreign stocks are, on average, holding a PEG ratio of 0.45 based on yesterday's closing prices.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 18% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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