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Toyota Motor Corporation (TM) shares rallied 8.8% in the last trading session to close at $197.36. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.9% gain over the past four weeks.
Toyota’s shares jumped after Nikkei reported that the company plans to raise its return on equity target to 20%, nearly doubling market expectations of 11% for the fiscal year ending in March.
This company is expected to post quarterly earnings of $4.36 per share in its upcoming report, which represents a year-over-year change of -36%. Revenues are expected to be $78.36 billion, down 3.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Toyota Motor, the consensus EPS estimate for the quarter has been revised 23.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Toyota Motor is a member of the Zacks Automotive - Foreign industry. One other stock in the same industry, Suzuki Motor (SZKMY), finished the last trading session 0.5% lower at $44.57. SZKMY has returned 8.4% over the past month.
Suzuki Motor's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.03. Compared to the company's year-ago EPS, this represents a change of +7.3%. Suzuki Motor currently boasts a Zacks Rank of #1 (Strong Buy).
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Toyota Motor Corporation (TM) : Free Stock Analysis Report
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