Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Japanese auto giant Toyota Motor (NYSE: TM) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Toyota's business, and see what CAPS investors are saying about the stock right now.
Toyota facts
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Headquarters (Founded)
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Toyota City, Japan (1933)
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Market Cap
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$138.96 billion
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Industry
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Auto Manufacturing
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TTM Revenue
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$246.51 billion
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Management
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President Katsuaki Watanabe (since 2005)
CFO Takeshi Suzuki (since 2004)
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Return on Equity (average last three years)
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14.5%
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Competitors
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Honda Motor (NYSE: HMC),
Nissan Motor (Nasdaq: NSANY)
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CAPS members bullish on TM also bullish on
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General Electric (NYSE: GE),
Johnson & Johnson (NYSE: JNJ)
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CAPS members bearish on TM also bearish on
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General Motors (NYSE: GM),
Ford Motor (NYSE: F)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, some 96% of the 787 All-Star members who have rated Toyota believe the stock will outperform the S&P 500 going forward. These Foolish bulls include TepperJason and ResearchLover, both of whom are ranked in the top 15% of our community.
Last month, TepperJason noted that Toyota "continues to sell cars at a good pace. The recession will hurt, of course, but Toyota is much more prepared than Ford or [General Motors] to weather the storm. Prius is still selling well."
An earlier pitch by ResearchLover in late July agrees with that bullish sentiment, further stressing Toyota's advantages over its American counterparts:
They have superior advertising and customer loyalty, which translates into word of mouth sales. Car value over time holds up better than [General Motors']. Heck, the cars hold up better. Dollar will rebound with interest rate increases by Ben, and this will help US sales on top of the above factors. In short, I'm predicting a flight to quality, even in a tough market for new car sales.
What do you think about Toyota, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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