Toyota Motor Corporation (TM) closed the most recent trading day at $195.39, moving +1.17% from the previous trading session. This change outpaced the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 0.55%.
The company's shares have seen an increase of 9.4% over the last month, surpassing the Auto-Tires-Trucks sector's gain of 5.01% and the S&P 500's loss of 0.84%.
The upcoming earnings release of Toyota Motor Corporation will be of great interest to investors. On that day, Toyota Motor Corporation is projected to report earnings of $2.92 per share, which would represent a year-over-year decline of 41.48%. At the same time, our most recent consensus estimate is projecting a revenue of $78.47 billion, reflecting a 5.24% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Toyota Motor Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.04% lower within the past month. Toyota Motor Corporation currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Toyota Motor Corporation is currently being traded at a Forward P/E ratio of 8.68. Its industry sports an average Forward P/E of 7.55, so one might conclude that Toyota Motor Corporation is trading at a premium comparatively.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 208, finds itself in the bottom 17% echelons of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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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