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Toyota Motor Corporation (TM) Stock Slides as Market Rises: Facts to Know Before You Trade

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The latest trading session saw Toyota Motor Corporation (TM - Free Report) ending at $170.43, denoting a -0.53% adjustment from its last day's close. This change lagged the S&P 500's 0.22% gain on the day. Meanwhile, the Dow experienced a drop of 0.33%, and the technology-dominated Nasdaq saw an increase of 0.76%.

Coming into today, shares of the company had lost 6.97% in the past month. In that same time, the Auto-Tires-Trucks sector lost 11.82%, while the S&P 500 gained 1.47%.

The upcoming earnings release of Toyota Motor Corporation will be of great interest to investors. The company is predicted to post an EPS of $4.39, indicating a 32.87% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $79.78 billion, up 0.81% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $21.70 per share and revenue of $323.54 billion, which would represent changes of -14.4% and +3.67%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Toyota Motor Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Toyota Motor Corporation possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Toyota Motor Corporation is currently exchanging hands at a Forward P/E ratio of 7.89. Its industry sports an average Forward P/E of 6.62, so one might conclude that Toyota Motor Corporation is trading at a premium comparatively.

It's also important to note that TM currently trades at a PEG ratio of 0.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Foreign was holding an average PEG ratio of 0.73 at yesterday's closing price.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 188, placing it within the bottom 26% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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