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 stock a wise investment in 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%.
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.
What is the stock price outlook for Toyota?
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 195.98 and a low estimate of 147.77. From the most recent price of 152.88, the median projection reflects a rise of +22.83%.
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 remained stable. Hover your mouse over earlier months for more information.
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?
The Toyota brand has the highest resale value according to Kelley Blue Book. According to KBB, “it’s simple, just produce a fantastic car that makes people’s lives better, charge a fair price for it, and make sure the car is the most comfortable, dependable, and pleasurable car in its category.
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.
Why are Toyota stock prices dropping?
As a result of the chip scarcity and the Shanghai lockdowns, Toyota on Thursday announced a net profit of 736.8 billion yen for the April to June quarter, a decrease of 17.9% from a year earlier. The vice’s other side was formed by rising material prices.
Is Ford a wise investment at the moment?
The price of Ford shares soared in 2021 and into the new year, but it plunged after the most recent market correction.
Investors should wait to see if Ford stock will maintain above its 10-week line as it builds a new base even though Ford has undeniably broken its downtrend. Despite the positive response to Ford’s earnings, a buy at this point would be dangerous because the stock hasn’t yet developed a solid basis. Additionally, shares are over 10% above the 10-week line, which is a sign of extension.
Visit IBD’s Stock Lists page to identify the finest stocks to buy and watch. Our Leaderboard and MarketSmith programs both offer further stock recommendations.
Will Toyota’s stock increase?
- Based on the stock performance over the previous 44 years, Toyota Motor has typically increased by 12.8% over the following 52 weeks.
- Is the stock of Toyota Motor Undervalued?
- In 23 of those 44 years, Toyota Motor has increased over the ensuing 52-week period, giving it a historical accuracy of 52.27%.
The Score for TM is 31, which denotes more risk than average and is 38% lower than its previous median score of 50.
- TM’s current stock price is in the 30 and 40% percentile area in terms of its previous Stock Score levels.
Can I buy Honda?
According to Trefis’ Honda’s valuation, the stock of Honda Motors (NYSE: HMC) at its present price of $29 has a potential upside of 30%. After Q2 2022 results, the stock’s price is unchanged (ended September 2021). Motorcycles’ sales volume for the second quarter of 2022 decreased by 3% year over year to 4,294K units. The volume of automobiles was 917K units during the quarter, down 26.8% year over year, while the number of life creation products, formerly known as power products, increased by 11% year over year to 1,522K units. The global shortage of semiconductor chips is the main cause of the decline in the automotive sector. As the supply of semiconductor chips has improved over the past two quarters, we anticipate an increase in overall sales and earnings for the fiscal year 2022 (which ends in March 2022).
For FY 2022, Honda’s revenues are anticipated to increase by 21% to 16 trillion ($148 billion) (ends in March 2022). Additionally, in 2022, its net income is predicted to increase to 772 billion ($7.16 billion) and its EPS to 447.59 ($4.14). When combined with the P/E multiple of 8.6x and an exchange rate of 0.01$, the expected increase in revenues to 16.5 trillion ($153 billion) and net income to 830 billion ($7.69 billion) for FY 2023 will result in an increase in earnings per share to 480.88 ($4.45), or $38, which is 30% more than the company’s current market price.
You may follow the evolution of our opinion by reviewing our past coverage of Honda’s stock, which is listed below.
The stock of Honda Motors (NYSE: HMC), which has increased by 29% since the end of FY 2020 (which concluded in March 2020), is currently near its short-term potential. Compared to the S&P 500, which has increased by 59% since the end of March 2020, HMC’s stock increased from $22 at the conclusion of the fiscal year to close to $29 at this time. Over the past few years, the company has experienced flat revenues and declining profits.
Should I purchase or sell GM stock?
General Motors Company is now ranked as a Zacks Rank 3 company, according to Zacks’ proprietary data, and we anticipate an equal return for GM shares in relation to the market over the coming several months. The VGM Score for General Motors Company is A. (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). The General Motors Company may be undervalued, according to valuation criteria. It would be a good choice for value investors, according to its Value Score of A. GM’s financial stability and expansion ambitions show that it has the potential to outperform the market. Its growth score right now is B. With a Momentum Score of D, recent price fluctuations and earnings estimate revisions suggest this would not be an excellent company for momentum investors.
Is Toyota superior to Ford?
The response is highly debatable. Ford is reportedly the winner, although some reports contend Toyota is more dependable.
For instance, approximately 90% of Ford vehicles received average or higher dependability ratings in Consumer Reports’ annual car reliability survey.
Only the Toyota Prius outperformed the Ford Fusion for Toyota when compared to the Ford vehicles, though.
based on the J.D. Toyota is rated as being more dependable than Ford in the Power Vehicle Reliability Survey. Ford received a pitiful 3 out of 5 for reliability, compared to Toyota’s stellar 5 out of 5.
The J seems to be a more logical choice. D. because according to a different report, Toyota is the manufacturer of the most durable automobiles, according to the Information Handling System (IHS) Automotive.
In addition, numerous Toyota models from the previous ten years, like the Tundra, Camry, and Avalon, are still in use today.
Which is better, Honda or Toyota?
Toyota has more automobiles, better costs, and higher reliability in the categories we looked at, making it the superior brand. When deciding between Honda and Toyota, Honda isn’t a slouch either thanks to its comparable dependability ratings, reasonable costs, and even higher safety ratings.
What stock is currently the most undervalued?
Seven undervalued stocks to buy right away:
- Corp. Exxon Mobil (XOM)
- Pharma Inc (PFE)
- Inc. AbbVie (ABBV)
- Incorporated Bank of America (BAC)
- Merck and Co Inc. (MRK)
- Widecom Inc. (AVGO)
- Company Comcast (CMCSA)
Toyota separated when?
A producer of automobiles is Toyota Motor. Co.’s main business activities include designing, producing, and marketing sedans, minivans, compact cars, sport utility vehicles, trucks, and related components and accessories globally. In order to assist the sales of cars and other items made by Co., Co. offers financing, car leasing, and a few other financial services primarily to its dealers and their clients. Design, production, assembly, and sales of passenger cars, minivans, trucks, and accessories are all included in Co.’s automotive business. Finance for dealers and their clients makes up the majority of Co.’s financial services activity. Toyota Motor has experienced 1 split, as per our data for the company’s stock splits in the past.
Our database of Toyota Motor stock splits shows 1 split for the company (TM). For TM, the separation happened on March 15, 1982. This was a 5 for 1 split, which meant that the shareholder now held 5 shares of TM instead of the pre-split 1 share. A 1000 share holding, for instance, before the split, became a 5000 share position after the split.
When a corporation splits its shares, like Toyota Motor did, the market capitalization before and after the split stays same, giving the shareholder additional shares but at a reduced value per share. However, a stock with a lower price per share frequently attracts a wider spectrum of buyers. If the share price increases as a result of the increased demand, the total market capitalization increases after the split. However, depending on the underlying principles of the firm, this does not always occur.
A stake size of 1000 shares at the beginning of the Toyota Motor stock split would have become 5000 shares at the current price. The compound annual growth rate (CAGR) for a short investment in Toyota Motor stock, commencing with a $10,000 purchase of TM, is examined here. It is presented on a split-history-adjusted basis taking into account the whole Toyota Motor stock split history.
Begin date:
Ending on:
Starting share price:
Final cost/share:
Initial shares:
Final shares:
Reinvested dividends per share:
Total profit:
Annual Total Return on Average:
the first investment:
Finally invested:
Years:
Dividends received/divided:
The following firms, which are likewise in the Materials sector and have a history of stock splits, are grouped under TM: