Toyota Motor Corporation (TM) Laps the Stock Market: Here's Why

Core Viewpoint - Toyota Motor Corporation is facing a projected decline in earnings and revenue for the upcoming earnings report, indicating potential challenges in its financial performance [2][3]. Financial Performance - The upcoming earnings report is expected to show earnings of $4.36 per share, a year-over-year decline of 35.98% [2]. - Projected net sales for the upcoming period are $78.36 billion, down 3.91% from the previous year [2]. - For the entire fiscal year, earnings are projected at $21.56 per share, representing a decline of 14.95%, while revenue is expected to be $304.34 billion, down 2.48% from the prior year [3]. Analyst Estimates - Recent adjustments to analyst estimates indicate changing business trends, with positive revisions reflecting analysts' confidence in the company's performance [4]. - Over the past month, there has been a 0.68% decrease in the Zacks Consensus EPS estimate for Toyota [6]. Valuation Metrics - Toyota is currently trading at a Forward P/E ratio of 8.15, which is higher than the industry average of 6, suggesting a premium valuation [7]. - The company's PEG ratio is 0.31, compared to the Automotive - Foreign industry average of 0.82, indicating a more favorable growth expectation relative to its price [8]. Industry Context - The Automotive - Foreign industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 159, placing it in the bottom 37% of over 250 industries [8]. - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [9].