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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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
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
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