Here's Why Toyota Motor Corporation (TM) Fell More Than Broader Market

Toyota Motor Corporation (TM) closed at $205.02 in the latest trading session, marking a -1.87% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.51%. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 2.01%.

Shares of the company witnessed a loss of 13.54% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its loss of 9.36%, and the S&P 500's loss of 3.63%.

The upcoming earnings release of Toyota Motor Corporation will be of great interest to investors.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.92 per share and a revenue of $308.85 billion, representing changes of -24.1% and -2.05%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toyota Motor Corporation. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 5.4% higher within the past month. As of now, Toyota Motor Corporation holds a Zacks Rank of #2 (Buy).

Investors should also note Toyota Motor Corporation's current valuation metrics, including its Forward P/E ratio of 11.66. This expresses a premium compared to the average Forward P/E of 11.54 of its industry.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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This article originally published on Zacks Investment Research (zacks.com).

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