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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 $195.25, marking a -0.99% move from the previous day. This change lagged the S&P 500's daily loss of 0.51%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq decreased by 0.93%.

The company's stock has dropped by 2.94% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 7.26% and the S&P 500's loss of 0.26%.

The upcoming earnings release of Toyota Motor Corporation will be of great interest to investors. The company's earnings report is expected on August 1, 2024. The company is expected to report EPS of $4.01, down 43.12% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $72.48 billion, indicating a 5.69% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $21.61 per share and a revenue of $319.48 billion, indicating changes of -14.75% and +2.37%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Toyota Motor Corporation. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.08% lower 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 9.12 right now. This signifies a premium in comparison to the average Forward P/E of 6.62 for its industry.

We can additionally observe that TM currently boasts a PEG ratio of 0.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Automotive - Foreign industry had an average PEG ratio of 0.74.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 186, this industry ranks in the bottom 27% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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