Toyota Motor Corporation (TM) Gains But Lags Market: What You Should Know

This story originally appeared on Zacks

In the last trading session, Toyota Motor Corporation (TM) closed at $201.90, recording a move of 0.77% from the day before. This change delayed the S&P 500’s gain of 0.92% on the day. Elsewhere, the Dow rose 0.51%, while tech-heavy Nasdaq added 0.54%.

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Before today’s trading, the company’s shares are up 13.76% over the past month. This outpaced the car and truck tire segment’s loss of 1.05% and the S&P 500’s loss of 0.85% in that time.

Toyota Motor Corporation will look to show strength as it approaches its next earnings release. The company is expected to report earnings per share of $3.76, down 33.69% from the previous quarter. Meanwhile, the Zacks Consensus revenue report expects net sales to be $69.27 billion, down 11.25% from the same period last year.

Looking at the full year, our Zacks Consensus estimates that analysts expect earnings of $18.65 per share and revenue of $285.79 billion. These totals will indicate changes of +24.42% and +11.11%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Toyota Motor Corporation. These recent reviews tend to reflect the evolving nature of short-term business trends. As such, positive rating reviews reflect the analyst’s optimism about the company’s business and profitability.

Our research shows that these discretionary changes are directly correlated with near-term stock prices. We developed Zacks Rank to take advantage of this phenomenon. Our system takes these discretionary changes into account and provides a clear and actionable rating model.

Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has an externally audited track record of outperforming, with the #1 stock returning an average of +25% per year since 1988. Over the past month , the Zacks Consensus EPS estimate remained constant. Toyota Motor Corporation currently has a Zacks rating of #1 (strong buy).

Investors should also note Toyota Motor Corporation’s current valuation metrics, including a forward price-to-earnings ratio of 10.74. This is a premium over the industry’s forward P/E average of 10.69.

It is also worth noting that TM currently has a PEG ratio of 0.47. The price-earnings-growth (PEG) ratio is similar to the widely used price-to-earnings (P/E) ratio, but this metric also takes into account a company’s expected earnings growth rate. Autos – Foreign stocks have, on average, a price-to-commission ratio of 0.39 based on yesterday’s closing prices.

Automotive – the foreign industry is part of the car and truck tire segment. The industry currently has a Zacks Industry Rating of 72, placing it in the top 29% of all 250+ industries.

Zacks Industry Ranks are listed in order from best to worst in terms of the average Zacks rating of individual companies in each of these sectors. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

You can find more information about all of these metrics and more at Zacks.com.

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