Toyota Motor Corp (TM): Today's Featured Automotive Laggard

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 closed the day down 0.3%. By the end of trading, Toyota Motor fell $3.18 (-2.5%) to $124.66 on heavy volume. Throughout the day, 1,491,009 shares of Toyota Motor exchanged hands as compared to its average daily volume of 631,800 shares. The stock ranged in price between $119.89-$124.98 after having opened the day at $122.48 as compared to the previous trading day's close of $127.84. Other companies within the Automotive industry that declined today were: Icahn ( IEP), down 5.4%, Patrick Industries ( PATK), down 4.3%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 4.2% and China Automotive Systems ( CAAS), down 3.0%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $205.4 billion and is part of the consumer goods sector. The company has a P/E ratio of 59.0, above the S&P 500 P/E ratio of 17.7. Shares are up 39.1% year to date as of the close of trading on Wednesday. Currently there are 2 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 impressive record of earnings per share growth, compelling growth in net income, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Tesla Motors ( TSLA), down 6.3%, Spartan Motors ( SPAR), down 4.5%, Shiloh Industries ( SHLO), down 3.7% and Winnebago Industries ( WGO), down 2.3%.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

Your Guide to Making a Lot of Money on the Driverless Car Boom

Tesla Headlines This Lineup of 12 Amazing New Cars for 2018

Stocks Dad Would Have Loved, And Why He Was Right

Honda Investing $267 Million, Adding 300 Jobs in U.S. for New Accord Model

Here Are 7 Eco-Friendly Cars to be Featured at Frankfurt Auto Show