Toyota Motor Corporation (TM) Exceeds Market Returns: Some Facts to Consider

Toyota Motor Corporation (TM) ended the recent trading session at $219.38, demonstrating a +1.53% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.88%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 1.31%.

Shares of the company have appreciated by 12.98% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 14.72%, and outperforming the S&P 500's gain of 2.48%.

The investment community will be paying close attention to the earnings performance of Toyota Motor Corporation in its upcoming release.

TM's full-year Zacks Consensus Estimates are calling for earnings of $18.26 per share and revenue of $322.25 billion. These results would represent year-over-year changes of -22.66% and +2.21%, respectively.

Investors should also note any recent changes to analyst estimates for Toyota Motor Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 2.3% higher within the past month. At present, Toyota Motor Corporation boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Toyota Motor Corporation is currently trading at a Forward P/E ratio of 11.83. This expresses a discount compared to the average Forward P/E of 13.9 of its industry.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 203, finds itself in the bottom 18% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com