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Toyota Motor Corporation (TM) Ascends But Remains Behind Market: Some Facts to Note

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The latest trading session saw Toyota Motor Corporation (TM - Free Report) ending at $171.53, denoting a +0.19% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.63%.

Coming into today, shares of the company had lost 6.69% in the past month. In that same time, the Auto-Tires-Trucks sector lost 4.73%, while the S&P 500 gained 3.76%.

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 $4.39, signifying a 32.87% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $79.78 billion, reflecting a 0.81% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $21.70 per share and a revenue of $323.54 billion, demonstrating changes of -14.4% and +3.67%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Toyota Motor Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.18% decrease. Toyota Motor Corporation is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Toyota Motor Corporation is at present trading with a Forward P/E ratio of 7.89. This denotes a premium relative to the industry's average Forward P/E of 6.74.

One should further note that TM currently holds a PEG ratio of 0.3. 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 0.74 based on yesterday's closing prices.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 25% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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