Toyota Motor Corporation (TM) closed the most recent trading day at $210.69, moving -0.32% from the previous trading session. This change lagged the S&P 500’s 0.08% gain on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

– Zacks

Heading into today, shares of the company had gained 14.48% over the past month, outpacing the Auto-Tires-Trucks sector’s gain of 7.23% and the S&P 500’s gain of 0.64% in that time.

Investors will be hoping for strength from Toyota Motor Corporation as it approaches its next earnings release. On that day, Toyota Motor Corporation is projected to report earnings of $3.74 per share, which would represent a year-over-year decline of 34.04%. Meanwhile, our latest consensus estimate is calling for revenue of $69.27 billion, down 11.25% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $18.92 per share and revenue of $284.84 billion. These totals would mark changes of +26.22% and +10.74%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Toyota Motor Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 1.45% higher within the past month. Toyota Motor Corporation is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Toyota Motor Corporation currently has a Forward P/E ratio of 11.13. This represents a no noticeable deviation compared to its industry’s average Forward P/E of 11.13.

Investors should also note that TM has a PEG ratio of 0.48 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Automotive – Foreign was holding an average PEG ratio of 0.41 at yesterday’s closing price.

The Automotive – Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.

To follow TM in the coming trading sessions, be sure to utilize Zacks.com.

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