Four group firms of Toyota Motor CorporationTM are likely to form a joint venture to combine their self-driving technologies, per Reuters. The idea is to compete with Stuttgart, Germany-based leading multinational engineering and electronics company, Bosch Group, in a better way.
Notably, Japanese auto giant Toyota is betting high on self-driving technology and it plans to start testing its self-driving vehicles by 2020. In March 2018, the company made the announcement to invest around $3 billion to develop software for self-driving vehicles.
Moreover, the latest joint venture formed by Denso Corp, Aisin Seiki Co, Jtekt Corp and Advics, is likely to bring together technologies such as braking and steering. Denso is likely to hold the majority stake in the joint venture, which is likely to be launched by the end of 2018. The new company will mainly supply Toyota but will also target automakers from the United States, Europe and China.
Earlier in this month, Toyota reported first-quarter fiscal 2019 results. Toyota's operating income rose 19% year over year to ¥682.6 billion ($6.3 billion) in first-quarter fiscal 2019 (ended Jun 30). Moreover, the net income gained 7.2% year over year to ¥657.3 billion ($6 billion). The company's net revenues increased 4.5% year over year to ¥7.36 trillion ($67.5 billion) in first-quarter fiscal 2019.
Over the past year, shares of the company have outperformed the industry it belongs to. Over this time frame, shares of the company grew 9.4%, whereas the industry increased 0.9%.
Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation FOXF , Honda Motor Co., Ltd. HMC and AB Volvo VLVLY . While Fox Factory sports a Zacks Rank #1 (Strong Buy), both Honda and Volvo carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have gained 62.6%.
Honda has an expected long-term growth rate of 3%. Shares of the company have risen 6.7% in the past year.
AB Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have gained 58.6%.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report
Toyota Motor Corporation (TM): Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report
AB Volvo (VLVLY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
