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Toyota Motor Corporation (TM) Beats Stock Market Upswing: What Investors Need to Know

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Toyota Motor Corporation (TM - Free Report) ended the recent trading session at $180.45, demonstrating a +1.28% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.98%.

Coming into today, shares of the company had gained 2.16% in the past month. In that same time, the Auto-Tires-Trucks sector gained 14.25%, while the S&P 500 gained 0.34%.

The upcoming earnings release of Toyota Motor Corporation will be of great interest to investors. The company is forecasted to report an EPS of $4.36, showcasing a 35.98% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $78.36 billion, down 3.91% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.56 per share and a revenue of $304.34 billion, signifying shifts of -14.95% and -2.48%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Toyota Motor Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% lower. At present, Toyota Motor Corporation boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Toyota Motor Corporation is presently trading at a Forward P/E ratio of 8.27. This valuation marks a premium compared to its industry's average Forward P/E of 6.24.

We can additionally observe that TM currently boasts a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Automotive - Foreign industry stood at 0.81 at the close of the market yesterday.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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