In the latest trading session, Toyota Motor Corporation (TM) closed at $169.47, marking a +1.5% move from the previous day. This change outpaced the S&P 500’s 0.83% gain on the day.
Coming into today, shares of the company had lost 7.24% in the past month. In that same time, the Auto-Tires-Trucks sector lost 3.1%, while the S&P 500 lost 3.68%.
TM will be looking to display strength as it nears its next earnings release. In that report, analysts expect TM to post earnings of $3.16 per share. This would mark year-over-year growth of 0.32%. Meanwhile, our latest consensus estimate is calling for revenue of $67.23 billion, up 5.32% from the prior-year quarter.
TM’s full-year Zacks Consensus Estimates are calling for earnings of $13.55 per share and revenue of $289.92 billion. These results would represent year-over-year changes of -9.61% and +12.71%, respectively.
It is also important to note the recent changes to analyst estimates for TM. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 32.76% lower. TM is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, TM is currently trading at a Forward P/E ratio of 12.32. This represents a premium compared to its industry’s average Forward P/E of 11.02.
Also, we should mention that TM has a PEG ratio of 0.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Automotive – Foreign was holding an average PEG ratio of 0.45 at yesterday’s closing price.
The Automotive – Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 117, putting it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow TM in the coming trading sessions, be sure to utilize Zacks.com.
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