In the most recent trading session, Toyota Motor Corporation (TM) closed at $174.52, reflecting a decline of 1.05%. This loss was smaller compared to the broader market, with the S&P 500 falling 2.36%, the Dow dropping 2.48%, and the Nasdaq slipping 2.55%.
Over the past month, Toyota’s stock has decreased by 7.51%, underperforming both the Auto-Tires-Trucks sector, which lost 2.11%, and the S&P 500, which saw a 5.6% drop.
Investors are now looking ahead to Toyota’s upcoming earnings report. The company is expected to report earnings per share (EPS) of $2.92, marking a 41.48% decline from the same quarter last year. However, revenue is projected to reach $78.47 billion, reflecting a 5.24% increase from the previous year.
Analysts will also be keeping a close eye on any changes in their projections for Toyota. These revisions often signal shifts in the company’s short-term performance. Positive changes in estimates typically suggest a more optimistic outlook for Toyota’s financial health.
Our research shows that these forecast adjustments have a direct correlation with stock price movements. To track these changes, we use the Zacks Rank system, which is designed to reflect analyst sentiment. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), and has a strong track record, with #1-rated stocks delivering an average annual return of 25% since 1988. Recently, Toyota’s consensus EPS estimate has risen by 2.94%, and the company currently holds a Zacks Rank of #2 (Buy).
In terms of valuation, Toyota is currently trading at a Forward Price-to-Earnings (P/E) ratio of 7.62, which is above the industry average of 6.59.
Toyota is part of the Automotive – Foreign industry, which falls under the broader Auto-Tires-Trucks sector. The industry has a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries.
The Zacks Industry Rank measures the average Zacks Rank of companies within an industry, with the top-ranked half outperforming the bottom half by a factor of two to one.
