Toyota Motor Corporation (TM) closed the most recent trading day at $185.20, moving +0.74% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.04%.
Coming into today, shares of the company had gained 15.41% in the past month. In that same time, the Auto-Tires-Trucks sector gained 8.64%, while the S&P 500 gained 1.35%.
Investors will be hoping for strength from TM as it approaches its next earnings release. The company is expected to report EPS of $3.43, up 223.58% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $62.37 billion, up 45.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.58 per share and revenue of $282.58 billion, which would represent changes of +10.61% and +9.86%, respectively, from the prior year.
Any recent changes to analyst estimates for TM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.55% lower within the past month. TM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that TM has a Forward P/E ratio of 11.09 right now. Its industry sports an average Forward P/E of 11.07, so we one might conclude that TM is trading at a premium comparatively.
Meanwhile, TM's PEG ratio is currently 0.85. 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 0.8 based on yesterday's closing prices.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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