Why Investors Aren’t Worried About Toyota

The above video is from Wednesday's MarketFoolery podcast, in which host Chris Hill, along with analysts Bill Barker and Alex Scherer, discuss the day's top business and investing stories. In this segment, the focus is on news that Toyota (NYSE: TM  ) is issuing a recall of 7.4 million vehicles, making it the largest automaker recall in 16 years. Despite the big headlines, though, shares were down only 2% on Wednesday. The guys analyze Toyota's brand and discuss reasons why investors seemingly are unfazed by the announcement. Watch the video clip for full details on the story.

A sizable number of consumers remain loyal to Toyota's brand, despite a series of recalls in the not-too-distant past and even, apparently, despite this most recent one. Brand loyalty signals a level of success that all automakers seek to achieve and maintain, and September numbers indicated that Ford may be well on its way to building exactly that. For instance, 50% of Escape sales over the past year came from trade-ins of non-Ford vehicles — a sign of the automaker's success in converting consumers to the Ford brand. However, the company's stock still seems stuck in neutral. Does this create an incredible buying opportunity, or are there hidden risks that investors need to know about? To answer these questions, Fool.com industrials analyst Brendan Byrnes has authored a premium research report with in-depth analysis on whether Ford is a buy or a sell, and why. Simply click here now to learn more and get started.

Alex Scherer has no positions in the stocks mentioned above. Bill Barker has no positions in the stocks mentioned above. Chris Hill has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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