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Honda Motor (HMC) Increases Yet Falls Behind Market: What Investors Need to Know
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Honda Motor (HMC - Free Report) closed at $32.26 in the latest trading session, marking a +0.19% move from the prior day. This move lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.19%.
Shares of the automaker have appreciated by 5.54% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 7.52% and the S&P 500's gain of 2.48%.
Analysts and investors alike will be keeping a close eye on the performance of Honda Motor in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.85, indicating a 16.67% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $37.68 billion, indicating a 19.76% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.16 per share and a revenue of $143.49 billion, signifying shifts of +37.29% and +14.79%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Honda Motor. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 6.23% rise in the Zacks Consensus EPS estimate. Honda Motor is currently a Zacks Rank #3 (Hold).
Looking at valuation, Honda Motor is presently trading at a Forward P/E ratio of 7.74. This represents a premium compared to its industry's average Forward P/E of 6.98.
Also, we should mention that HMC has a PEG ratio of 0.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. HMC's industry had an average PEG ratio of 0.36 as of yesterday's close.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Honda Motor (HMC) Increases Yet Falls Behind Market: What Investors Need to Know
Honda Motor (HMC - Free Report) closed at $32.26 in the latest trading session, marking a +0.19% move from the prior day. This move lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.19%.
Shares of the automaker have appreciated by 5.54% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 7.52% and the S&P 500's gain of 2.48%.
Analysts and investors alike will be keeping a close eye on the performance of Honda Motor in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.85, indicating a 16.67% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $37.68 billion, indicating a 19.76% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.16 per share and a revenue of $143.49 billion, signifying shifts of +37.29% and +14.79%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Honda Motor. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 6.23% rise in the Zacks Consensus EPS estimate. Honda Motor is currently a Zacks Rank #3 (Hold).
Looking at valuation, Honda Motor is presently trading at a Forward P/E ratio of 7.74. This represents a premium compared to its industry's average Forward P/E of 6.98.
Also, we should mention that HMC has a PEG ratio of 0.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. HMC's industry had an average PEG ratio of 0.36 as of yesterday's close.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.