Honda Motor (HMC) Rises But Trails Market: What Investors Should Know

In the latest market close, Honda Motor (HMC) reached $34.58, with a +0.09% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.2% for the day. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.59%.

Coming into today, shares of the automaker had lost 7.32% in the past month. In that same time, the Auto-Tires-Trucks sector lost 11.58%, while the S&P 500 lost 4.16%.

The upcoming earnings release of Honda Motor will be of great interest to investors. It is anticipated that the company will report an EPS of $0.41, marking a 19.61% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $37.96 billion, indicating a 14.5% upward movement from the same quarter last year.

Investors might also notice recent changes to analyst estimates for Honda Motor. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.88% lower. Honda Motor is currently a Zacks Rank #3 (Hold).

Investors should also note Honda Motor's current valuation metrics, including its Forward P/E ratio of 7.64. This valuation marks a premium compared to its industry's average Forward P/E of 6.19.

It's also important to note that HMC currently trades at a PEG ratio of 0.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Foreign stocks are, on average, holding a PEG ratio of 0.35 based on yesterday's closing prices.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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