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Why Toyota Motor (TM) Could Be A Top Value Stock Pick

Published 09/08/2017, 08:34 AM
Updated 07/09/2023, 06:31 AM
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Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Toyota Motor Limited (NYSE:TM) .

Toyota Motor in Focus

TM may be an interesting play thanks to its forward PE of 10.1, its P/S ratio of 0.7, and its decent dividend yield of 3.1%. These factors suggest that Toyota Motor is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that TM has decent revenue metrics to back up its earnings.

Toyota Motor Corp Ltd Ord PE Ratio (TTM)

But before you think that Toyota Motor is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 4.7% in the past 30 days, thanks to two upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push TM to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.

So really, Toyota Motor is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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Toyota Motor Corp Ltd Ord (TM): Free Stock Analysis Report

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