Here's Why Toyota Motor Corporation (TM) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Toyota Motor Corporation (TM)
Founded in 1973, Japan-based Toyota Motor Corporation is one of the leading automakers in the world in terms of sales and production. Its product portfolio consists of a full range of models from passenger cars and minivans to trucks as well as related parts and accessories. Apart from combustion-engine vehicles, the company is also working on fuel cell and automated vehicles. It plans to offer a committed electrified model or an electrified option for customers of Toyota or Lexus models by 2025. The company’s operations are classified into three segments — Automotive (91% of net revenues from external customers in fiscal 2023), Financial Services (7.5%) and All Other (3.3%).
TM is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 11X for the current fiscal year compared to the Automotive - Foreign industry's P/E of 7.2X. Additionally, TM has a PEG Ratio of 0.5 and a Price/Cash Flow ratio of 7.7X. Value investors should also note TM's Price/Sales ratio of 0.9X.
A company's earnings performance is important for value investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for TM, while the Zacks Consensus Estimate has increased $0.32 to $17.22 per share. TM also holds an average earnings surprise of 46.9%.
TM should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Toyota Motor Corporation (TM) : Free Stock Analysis Report
