Toyota Motor Corporation (TM) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, Toyota Motor Corporation (TM) closed at $207.01, marking a -1.27% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.18%.

Shares of the company witnessed a loss of 9.94% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its loss of 6.9%, and the S&P 500's loss of 4.28%.

The investment community will be paying close attention to the earnings performance of Toyota Motor Corporation in its upcoming release.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.19 per share and a revenue of $312.76 billion, indicating changes of -22.96% and -0.81%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Toyota Motor Corporation. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.79% higher. Toyota Motor Corporation is currently a Zacks Rank #2 (Buy).

Looking at valuation, Toyota Motor Corporation is presently trading at a Forward P/E ratio of 9.09. For comparison, its industry has an average Forward P/E of 9.73, which means Toyota Motor Corporation is trading at a discount to the group.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 22% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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