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The latest trading session saw Toyota Motor Corporation (TM) ending at $193.12, denoting a +1.43% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 1.89%.
Shares of the company witnessed a gain of 7.56% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 0.81% and the S&P 500's loss of 1.7%.
Market participants will be closely following the financial results of Toyota Motor Corporation in its upcoming release. 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. Simultaneously, our latest consensus estimate expects the revenue to be $78.36 billion, showing a 3.91% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.93 per share and a revenue of $307.28 billion, representing changes of -21.38% and -1.54%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toyota Motor Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.56% decrease. Toyota Motor Corporation is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Toyota Motor Corporation currently has a Forward P/E ratio of 9.55. Its industry sports an average Forward P/E of 7.09, so one might conclude that Toyota Motor Corporation is trading at a premium comparatively.
Meanwhile, TM's PEG ratio is currently 0.36. 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. By the end of yesterday's trading, the Automotive - Foreign industry had an average PEG ratio of 0.73.