Toyota Motor Corporation (TM) Stock Sinks As Market Gains: Here’s Why

Toyota Motor Corporation (TM) closed at $190.70 in the latest trading session, marking a -0.76% move from the prior day. The stock’s change was less than the S&P 500’s daily gain of 0.08%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 0.52%.

Prior to today’s trading, shares of the company had gained 6.36% over the past month. This has outpaced the Auto-Tires-Trucks sector’s loss of 19.95% and the S&P 500’s loss of 7.33% in that time.

Market participants will be closely following the financial results of Toyota Motor Corporation in its upcoming release. On that day, Toyota Motor Corporation is projected to report earnings of $2.19 per share, which would represent a year-over-year decline of 56.11%. Meanwhile, the latest consensus estimate predicts the revenue to be $75.52 billion, indicating a 1.28% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $21.01 per share and a revenue of $309.97 billion, demonstrating changes of -17.12% and -0.68%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toyota Motor Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.29% upward. Toyota Motor Corporation currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Toyota Motor Corporation currently has a Forward P/E ratio of 9.15. This denotes a premium relative to the industry’s average Forward P/E of 7.29.

Investors should also note that TM has a PEG ratio of 0.35 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As the market closed yesterday, the Automotive – Foreign industry was having an average PEG ratio of 1.13.