Toyota Motor Corporation (TM) shares fall as market gains: What you need to know

Joyota Motor Corporation (TM) closed at $178.43 last trading session, marking a -1.02% move from the previous day. That change lagged the S&P 500’s daily gain of 0.51%. Meanwhile, the Dow Jones gained 0.44% and the tech-heavy Nasdaq gained 0.19%.

Today, shares of the company were down 1.08% over the past month. At the same time, the Auto-Tyres-Trucks sector gained 10.09%, while the S&P 500 gained 5.51%.

Investors are hoping for strength from Toyota Motor Corporation ahead of its next earnings release. In this report, analysts expect Toyota Motor Corporation to post earnings of $2.86 per share. That would mark a year-over-year decline of 44.79%. Our most recent consensus estimate calls for quarterly revenue of $70.2 billion, down 3.26% from the prior year period.

Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $18.23 per share and revenue of $280.35 billion. These totals would mark changes of +21.61% and +8.99%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Toyota Motor Corporation. These revisions help show the ever-changing nature of short-term trading trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection has increased by 0.07%. Toyota Motor Corporation currently has a Zacks rank of #3 (Hold).

In terms of valuation, Toyota Motor Corporation is currently trading at a Forward P/E ratio of 9.89. Its industry sports an average Forward P/E of 8.95, so we can conclude that Toyota Motor Corporation is trading at a premium comparatively.

Additionally, it is worth mentioning that TM has a PEG ratio of 0.44. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. Automotive – Foreign equities hold an average PEG ratio of 0.49 based on yesterday’s closing prices.

The Automotive – Foreign Industry is part of the Auto-Tyres-Trucks sector. This group has a Zacks Industry Rank of 179, which places it in the bottom 30% of all 250+ industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

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