Toyota Stock Remains A Strong Buy Amid EV Sales Surge

StevenCress
01-16

Summary

  • In October, I recommended Toyota as a Strong Buy and strong year-end sales results have bolstered this thesis as the auto giant executes on its bid to gain EV market share.
  • Toyota EV sales volumes surged 30% YOY in the U.S. in 2023, accounting for ⅓ of units sold.
  • Toyota is #1 among Seeking Alpha’s Quant-rated automaker stocks, securing high grades in every key category, including growth, valuation, and profitability.

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One of the most attractive investments in the industry, Toyota (NYSE:TM) has secured the #1 slot among Seeking Alpha's Top Quant-Rated Auto Manufacturers. Toyota's underlying metrics highlight the company's robust, profitable growth, with revenue up

"Toyota's multi-pathway approach to electrification accelerated in 2023 with even more vehicle choices to meet our customer's lifestyle and budget…our teams are busy preparing for an outstanding 2024 to bring 22 new, refreshed or special edition vehicles to showrooms, including sedans and more electrified options to satisfy strong customer demand. By the end of 2025, we plan to have an electrified option available for every Toyota and Lexus vehicle in the U.S.," said North American Executive VP Jack Hollis.

Toyota Motor Corporation Stock

  • Market Capitalization: $252.87B

  • Quant Rating: Strong Buy

  • Quant Sector Ranking (as of 1/10/2024): 3 out of 528

  • Quant Industry Ranking (as of 1/10/2024): 1 out of 32

Toyota Stock Factor Grades (SA Premium)

The stock has risen by around 30% since it announced a new battery technology that pushes the EV range to 620 to 930 miles. These new "solid-state" batteries are also expected to result in ~10 to 30-minute charging, cost significantly less, and have lower fire and maintenance risks. Further, the company expects this technology to be implemented from 2026 to 2028, making it a horizon that potentially warrants a stock price premium.

Growth & Profitability

TM Stock Growth Grade (SA Premium)

TM Stock Consensus Revenue Estimates (SA Premium)

Momentum & Valuation

Toyota 1Y Stock Performance Vs. S&P 500 (SA Premium)

TM Stock Valuation (SA Premium)

Risks

Concluding Summary

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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