Toyota Motor Corp (TM): Automotive's Highlighted Dud Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Toyota Motor ( TM) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole was unchanged today. By the end of trading, Toyota Motor fell $1.19 (-1.1%) to $107.52 on average volume. Throughout the day, 675,751 shares of Toyota Motor exchanged hands as compared to its average daily volume of 573,600 shares. The stock ranged in price between $106.84-$107.95 after having opened the day at $107.15 as compared to the previous trading day's close of $108.71. Other companies within the Automotive industry that declined today were: Arctic Cat ( ACAT), down 4.5%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 3.2%, Tesla Motors ( TSLA), down 3.2%, and Winnebago Industries ( WGO), down 2.6%.
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Toyota Motor Corporation engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles and related parts primarily in Japan, North America, Europe, and Asia. Toyota Motor has a market cap of $168.64 billion and is part of the consumer goods sector. The company has a P/E ratio of 48.4, above the S&P 500 P/E ratio of 17.7. Shares are up 16.6% year to date as of the close of trading on Monday. Currently there are two analysts that rate Toyota Motor a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Toyota Motor as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Strattec Security Corporation ( STRT), up 4.5%, Federal-Mogul ( FDML), up 3.1%, Allison Transmission Holdings ( ALSN), up 2.4%, and Wabco Holdings Incorporated ( WBC), up 2.1%, were all gainers within the automotive industry with PACCAR ( PCAR) being today's featured automotive industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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