On Mar 23, 2015, ADRs of Toyota Motor Corporation TM reached a new 52-week high of $145.80, before eventually closing at $145.32. The closing price represents a year-to-date return of 15.8%, much higher than the S&P 500’s total return of 2.2%.
Average volume of ADRs traded over the last three months is roughly 308 thousand. Toyota looks set to perform well in the future with expected long-term earnings per ADR growth rate of 7%.
Price Drivers
Toyota has been the leading automaker in terms of global sales in the last three years. The Japanese automaker’s victory can be attributed to its impressive product lineup and marketing initiatives.
Toyota recorded year-over-year improvement in both earnings and revenues in third-quarter fiscal 2015 (ended Dec 31, 2014). The top and bottom lines also surpassed the Zacks Consensus Estimate.
Consequently, Toyota raised its guidance for revenues, operating income and net income for fiscal 2015. All three figures are expected to improve significantly over fiscal 2014.
Toyota is banking on emerging markets, including Asia, for its sales growth. By fiscal 2015, the automaker plans to introduce eight compact car models in the emerging markets including Brazil, China, India and Indonesia, to stay on par with other leading automakers.
Toyota currently carries a Zacks Rank #4 (Sell).
Other Stocks to Consider
Better-ranked automobile stocks include Tata Motors Limited TTM, Superior Industries International, Inc. SUP and Wabash National Corp. WNC. While Tata Motors sports a Zacks Rank #1 (Strong Buy), both Superior Industries and Wabash National carry a Zacks Rank #2 (Buy).
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