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Why Toyota Motor Corporation (TM) Dipped More Than Broader Market Today

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In the latest trading session, Toyota Motor Corporation (TM - Free Report) closed at $181.37, marking a -1.1% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.57%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq lost 1.64%.

Shares of the company have depreciated by 2.13% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 3.47% and the S&P 500's gain of 4%.

Market participants will be closely following the financial results of Toyota Motor Corporation in its upcoming release. The company's upcoming EPS is projected at $3.66, signifying a 3.17% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $73.72 billion, indicating a 6.59% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.31 per share and revenue of $305.05 billion. These totals would mark changes of +45.41% and +11.03%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Toyota Motor Corporation. Such recent modifications usually signify the changing landscape of near-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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Toyota Motor Corporation possesses a Zacks Rank of #2 (Buy).

In the context of valuation, Toyota Motor Corporation is at present trading with a Forward P/E ratio of 9.49. This signifies a premium in comparison to the average Forward P/E of 6.56 for its industry.

It's also important to note that TM currently trades at a PEG ratio of 0.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Automotive - Foreign industry had an average PEG ratio of 0.38.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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