Toyota Vs. Ford — Which Motor Stock Is The Better Buy?
Portfolio Pulse from Surbhi Jain
Toyota Motor Corp (NYSE:TM) and Ford Motor Co (NYSE:F) are set to report their earnings on Feb. 6, with contrasting expectations. Toyota is anticipated to report $75.94 billion in Q3 revenues, while Ford is expected to report 13 cents in Q4 EPS and $39.53 billion in revenues. Toyota is known for its hybrid technology and global market share, whereas Ford has a strong presence in the U.S., particularly with trucks and SUVs. Ford's U.S. sales increased by 4.3%, outpacing Toyota despite challenges in the EV segment. Over the past year, Toyota's stock is up over 40%, while Ford's is down over 10%, with Ford trading at a lower P/E ratio. Analysts rate Ford a hold with a 5% upside, while Toyota's stock is considered overvalued.
February 05, 2024 | 7:27 pm
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POSITIVE IMPACT
Ford is expected to report 13 cents in Q4 EPS and $39.53 billion in revenues, with a strong U.S. sales performance. Its stock is down over 10% but trades at a favorable forward P/E of 6.78, rated a hold by analysts.
Ford's expected earnings and strong U.S. sales performance, coupled with its lower valuation compared to Toyota, suggest a potential short-term upside, especially given the analyst ratings and market positioning.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Ford's U.S. sales outpaced its closest rival, General Motors Co (NYSE:GM), with a 4.3% increase to 152,617 vehicles and a market share of 13.7%.
While the article mentions Ford's sales performance in comparison to GM, it does not provide specific financial or market impact data for GM, making the short-term impact neutral but noteworthy for context.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Toyota is expected to report significant Q3 revenues and is recognized for its hybrid technology and global market share. However, its stock is considered overvalued by analysts, with a forward P/E of 17.7.
Toyota's anticipated strong earnings report reflects its solid market position, but the stock's current valuation and analyst consensus suggest a potential short-term downside due to overvaluation.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90