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Honda Motor (HMC) Stock Sinks As Market Gains: What You Should Know
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Honda Motor (HMC - Free Report) closed the most recent trading day at $34.84, moving -0.43% from the previous trading session. This change lagged the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.83%.
Prior to today's trading, shares of the automaker had gained 9.86% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 1.15% and the S&P 500's loss of 2.84% in that time.
Honda Motor will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.69, down 13.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $32.12 billion, up 4.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.91 per share and revenue of $134.63 billion. These totals would mark changes of +29.04% and +7.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Honda Motor. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Honda Motor currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Honda Motor has a Forward P/E ratio of 8.95 right now. This valuation marks a premium compared to its industry's average Forward P/E of 6.84.
Also, we should mention that HMC has a PEG ratio of 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Foreign stocks are, on average, holding a PEG ratio of 0.55 based on yesterday's closing prices.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Honda Motor (HMC) Stock Sinks As Market Gains: What You Should Know
Honda Motor (HMC - Free Report) closed the most recent trading day at $34.84, moving -0.43% from the previous trading session. This change lagged the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.83%.
Prior to today's trading, shares of the automaker had gained 9.86% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 1.15% and the S&P 500's loss of 2.84% in that time.
Honda Motor will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.69, down 13.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $32.12 billion, up 4.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.91 per share and revenue of $134.63 billion. These totals would mark changes of +29.04% and +7.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Honda Motor. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Honda Motor currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Honda Motor has a Forward P/E ratio of 8.95 right now. This valuation marks a premium compared to its industry's average Forward P/E of 6.84.
Also, we should mention that HMC has a PEG ratio of 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Foreign stocks are, on average, holding a PEG ratio of 0.55 based on yesterday's closing prices.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.