Toyota Motor is a buy for a number of reasons. The draw in this case is the brand name, which enjoys a devoted fan base, which naturally creates a strong demand for any future EV offering with the Toyota or Lexus badge. Even if the corporation hasn’t been a pioneer in battery-powered EVs, given its extensive global infrastructure and manufacturing know-how, its plan to build up in that direction seems plausible. According to this metric, the company continues to have a positive growth outlook and is in a good position to increase its market share globally.
With a price estimate of $235.00 for the next year, which corresponds to a 1-year forward P/E of 10x the current consensus fiscal 2023 EPS, we rank shares of TM as a buy. The chart below shows that since the peak of the pandemic crash in 2020, shares of TM have been closely following a trendline. This pattern should continue, in our opinion, and the most recent decline from the early-January high of $212 signals a fresh window for purchasing.
We are adopting a more upbeat stance in the midst of all the stories about macro concerns, heightened inflation pressures on consumer discretionary spending, and rising interest rates. Nevertheless, there are dangers to think about. The positive case for the stock might be undermined by a worsening of the forecast for global growth while keeping a watch on events in Eastern Europe related to the conflict between Russia and Ukraine. A review of the long-term profits prospects would allow for a leg lower in the stock if the results were less than anticipated and below management guidance. Over the coming quarters, keep an eye on things like production and sales levels, the operating margin, and any changes to the BEV plan.
In This Article...
Is Toyota a worthwhile investment for 2022?
One Wall Street analyst analyzing the (NYSE: TM) stock has determined that the stock should be held.
One analyst has given TM a Strong Buy recommendation of 0%, a Buy recommendation of 0%, a Hold recommendation of 100%, a Sell recommendation of 0%, and a Strong Sell recommendation of 0%.
Will the price of Toyota shares rise?
The consensus price target among the 18 analysts that are providing 12-month price projections for Toyota Motor Corp. is 187.78, with a high estimate of 204.15 and a low estimate of 147.77. From the most recent price of 156.27, the median forecast reflects a rise of +20.16%.
Analyst Recommendations
The current consensus among the 21 investment analysts surveyed is to buy Toyota Motor Corporation stock. Since August, when it remained unchanged from a Buy rating, this rating has been stable. Mouse over the previous months for more information.
Can I invest in Toyota Motor?
Buy is the general consensus for Toyota Motor. Based on 3 buy ratings, 2 hold ratings, and no sell ratings, the firm has an average rating score of 2.60.
Toyota: A reliable dividend stock?
Toyota distributes 25.4% of its earnings to its stockholders. Our indicator for the dividend’s dependability is 0.87 out of a possible 1.0. This suggests a historically dependable dividend payer. Analysts also anticipate a 20.58% increase in the dividend for the current fiscal year.
Toyota stock: Is it overpriced?
According to GuruFocus Value assessment, the stock of Toyota Motor (NYSE:TM, 30-year Financials) exhibits all the symptoms of being materially overvalued. The stock should be traded at the GuruFocus Value, which is GuruFocus’ assessment of the stock’s fair value. It is determined using previous stock multiples, historical business growth, and analyst projections of future business performance. An expensive stock will likely have a bad future return if its price is much higher than the GF Value Line. On the other hand, its future return will probably be larger if it is far below the GF Value Line. Toyota Motor stock appears to be extremely expensive at its current price of $182.41 per share and market worth of $255 billion. In the graph below, the GF Value for Toyota Motor is displayed.
The long-term return of Toyota Motor’s stock is probably going to be substantially lower than its expected future company growth, which is predicted to gain 0.06% yearly over the next three to five years, because Toyota Motor is significantly overvalued.
Why should I buy Toyota?
Toyota has been given the 2019 Best Resale Value for Best Brand award by Kelley Blue Book for the third year in a row because of their record for producing high-quality automobiles with exceptional reliability and longevity.
Why are Toyota stock prices dropping?
Longer delivery windows brought on by the manufacturing slump and reduced inventory levels were the causes of the reduction. Due to production bottlenecks, the automaker had to cancel some orders for SUVs like the Harrier, also known as the Venza in North America.
Toyota: Is it undervalued?
The P/CF for TM over the last year has ranged from 6.60 to 7.70, with a median of 5.29. These are just a few of the important indicators that contribute to Toyota Motor Corporation’s high Value rating, but they demonstrate how the company is now cheap.
Is Toyota a bargain?
TM’s P/CF during the past year has ranged from a high of 7.70 to a low of 5.29, with a medium of 6.60. These are just a few of the important indicators that go into the high Value rating for Toyota Motor Corporation, but they demonstrate that the stock is probably undervalued right now.
Is Toyota currently producing again?
In its March 2023 fiscal year, which ends, Toyota expects to produce 9.7 million automobiles. After producing 8.2 million in fiscal 2021, it produced roughly 8.6 million automobiles in fiscal 2022. To lower car prices, production must be increased more quickly.
What goals does Toyota have for the upcoming five years?
Toyota is reacting to market and regulatory demands for greener automobiles with a dual focus. Toyota will allocate engineers to concentrate on advancing battery-electric vehicles and hybrid technology between now and 2021. In order to achieve its objectives under the new five-year plan, Toyota intends to boost the number of employees devoted to developing hybrid systems by 30%, according to industry publications. It appears Toyota will spend less money on cars that are fuel cell powered given the new initiative.
Toyota, a value investment?
Investors should take into account that this is a capital-intensive, cyclical business with generally low margins before investing in any automaker. These are typically viewed as drawbacks, therefore some investors might prefer to steer clear of the sector completely.
There is still no standardized response for those who want exposure to the automotive business. Toyota is a well-known, internationally diverse company with a leadership team that appears to be focused on day-to-day operations and is not well-known to the general public. Furthermore, at approximately 12 times projected earnings, Toyota’s stock is not overly pricey. Toyota likewise has a strong dividend track record, however it should be noted that changes in the Yen/USD exchange rate can affect dividend income for US-based investors. For investors looking for a reliable, tested value play in the sector, Toyota may be the best option. It has fair EV plans and the potential to pay out significant dividends.
Tesla, though, is considerably different from that and might still be the best option for some investors. Its CEO is much more forceful, but you might also say that he exhibits some odd behavior, such as when he makes pronouncements about cryptocurrencies. Compared to Toyota, Tesla is much more expensive, significantly less lucrative, and less diverse. However, Tesla is expanding more quickly, and even though it is currently costly, TSLA may have more potential if Elon Musk’s ideas for autonomous vehicles materialize. Tesla is too big of a wager on unproven AV technology in my opinion, thus Toyota strikes me as the better option right now. However, depending on your objectives, investment strategy, and risk tolerance, you might decide that Tesla is the better option for your portfolio.
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Can you purchase Toyota stock?
- contrasting stock trading platforms You must locate a trading platform that provides access to international stock markets if you want to purchase shares in a firm that is listed outside of Australia. Look for a platform with cheap brokerage and foreign currency fees if you’re just getting started.
- Create and add money to your brokerage account. Fill out an application with your financial and personal information, including your ID and tax file number. Use a bank transfer, credit card, or debit card to top off your account.
- Look up Toyota. Find the stock using the ticker symbol or name: TM. Research its history to check it’s a solid investment against your financial goals.
- Purchase today or tomorrow. Use a market order to buy now, or a limit order to postpone your purchase until Toyota hits the price you want. Look into dollar-cost averaging, which smooths out buying at regular times and amounts, to spread out your risk.
- Choose how many to purchase. Weigh your budget against a diverse portfolio that can reduce risk during market ups and downs at the most recent close price of US$157.31. Depending on your broker, you might be able to purchase a fractional share of Toyota.
- Inspect your investment. Congratulations, you are now a Toyota shareholder. Track the performance of your stock and even the company to maximize your portfolio while keeping a long-term perspective. Dividends and shareholder voting rights on directors and management that could impact your stock may be available to you.
Which blue-chip stock is the best?
Berkshire Hathaway (NYSE:BRK-A, BRK-B), which is widely regarded as the ultimate blue-chip stock, has repeatedly shown that its share price can beat the market in any situation. In contrast to the benchmark 23% decrease for the S&P 500 index so far in 2022, the decline in the BRK.B stock is only 10%.
The famed investor Warren Buffett’s holding firm is the owner of a wide range of companies, from the Geico insurance company to the Dairy Queen fast food restaurant chain, as well as jewelers, railroads, and the Fruit of the Loom underwear manufacturer.
Additionally, Berkshire Hathaway maintains a sizable stock portfolio worth more than $300 billion, primarily made up of blue-chip corporations like Apple, Bank of America, and several others.
Buffett’s meticulous portfolio construction and buy-and-hold investment philosophy are credited with guiding Berkshire Hathaway through numerous market downturns, including the Black Monday disaster in 1987, the dot-com bubble burst in 2000, and the financial crisis of 20082009. And each time, the BRK.B stock has come out on top stronger.
Tesla: a blue-chip company?
The sixth most valuable business in the world, Tesla (TSLA), is anticipated to soon shed its “junk bond rating and become a “blue chip,” which is long overdue.
Tesla has produced profits for more than two years in a row and amassed over $18 billion in cash while carrying very little debt, but rating agencies like S&P Global Ratings and Moody’s Investors Service still classify the company as a “junk bond.”
Analysts and rating specialists now anticipate that Tesla will eventually receive an upgrade by the end of the year.