Toyota Motor Corporation (TM) ended the recent trading session at $172, demonstrating a +1.52% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.64%.
Shares of the company witnessed a loss of 9.24% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its loss of 1.73% and the S&P 500's loss of 3.56%.
The investment community will be paying close attention to the earnings performance of Toyota Motor Corporation in its upcoming release. It is anticipated that the company will report an EPS of $2.92, marking a 41.48% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $78.47 billion, showing a 5.24% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for Toyota Motor Corporation 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Toyota Motor Corporation is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Toyota Motor Corporation is currently trading at a Forward P/E ratio of 7.54. This expresses a premium compared to the average Forward P/E of 6.34 of its industry.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Toyota Motor Corporation (TM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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