Toyota Motor Corporation (TM) closed at $175.51 in the latest trading session, marking a -0.15% move from the prior day. This move lagged the S&P 500’s daily gain of 1.71%.
Prior to today’s trading, shares of the company had lost 3.27% over the past month. This has lagged the Auto-Tires-Trucks sector’s gain of 1.22% and the S&P 500’s loss of 2.25% in that time.
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.
Investors should also note any recent changes to analyst estimates for TM. These revisions help to show the ever-changing nature 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 31.29% lower within the past month. TM is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, TM currently has a Forward P/E ratio of 12.97. Its industry sports an average Forward P/E of 11.82, so we one might conclude that TM is trading at a premium comparatively.
We can also see that TM currently has a PEG ratio of 0.6. 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. TM’s industry had an average PEG ratio of 0.42 as of yesterday’s close.
The Automotive – Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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