Toyota Motor Corporation (TM) Gains But Lags Market: What You Should Know

Toyota Motor Corporation (TM) closed at $193.13 in the latest trading session, marking a +1.67% move from the prior day. The stock lagged the S&P 500's daily gain of 2.44%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 0.28%.

Heading into today, shares of the company had gained 3.19% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 18.6% and the S&P 500's loss of 9.65% in that time.

Investors will be hoping for strength from Toyota Motor Corporation as it approaches its next earnings release. On that day, Toyota Motor Corporation is projected to report earnings of $3.74 per share, which would represent a year-over-year decline of 34.04%. Our most recent consensus estimate is calling for quarterly revenue of $67.26 billion, down 13.82% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $18.31 per share and revenue of $280.62 billion, which would represent changes of +22.15% and +9.1%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Toyota Motor Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, the Zacks Consensus EPS estimate has moved 1.84% lower. Toyota Motor Corporation currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Toyota Motor Corporation is holding a Forward P/E ratio of 10.38. Its industry sports an average Forward P/E of 10.38, so we one might conclude that Toyota Motor Corporation is trading at a no noticeable deviation comparatively.

It is also worth noting that TM currently has a PEG ratio of 0.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Foreign was holding an average PEG ratio of 0.4 at yesterday's closing price.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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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.