3 Reasons to Buy Toyota Today

Recs

7

No matter what's going on in the market or a specific company's history, there are always reasons to consider buying shares in a business. After all, some of the best opportunities in stocks are born from historically bloody times.

Motley Fool CAPS hosts a boatload of opinions from more than 130,000 members on more than 5,300 companies, each giving good reasons to own -- or sell -- a stock.

In the case of Japanese automaker Toyota (NYSE: TM), a total of 3,272 members have offered their bullish or bearish opinions. Scouring the detailed information packed in pitches and other comments, here are three of the top reasons to buy Toyota today:

1. Quality products
When sales plummet and competition gets brutal, quality tends to stand out as a major differentiating factor. Many CAPS members take comfort in the loyalty that Toyota car owners show toward the company's products, believing that this faithfulness will provide long-term sustainability for its business. Japanese automakers Honda (NYSE: HMC), Toyota, and Nissan (Nasdaq: NSANY) have gained market share over the years as they've raised the bar in quality standards.                             

2. A green leader
Even major corporations are pushing to adopt fuel-efficient cars. AT&T (NYSE: T) recently announced that it will deploy 15,000 alternative-fuel vehicles in the next decade, a move Clean Energy Fuels (Nasdaq: CLNE) was doubtless happy to see. As a leader in the green car industry right here in the U.S., Toyota is poised to capitalize on the trend as future demand picks up, according to many CAPS members. The Prius has been a favorite among hybrid owners, and Toyota recently announced its milestone 1 millionth hybrid vehicle sold in the U.S.

3. Better-positioned
Toyota recently surpassed GM as the world's biggest automaker in terms of car sales. With years of internal investments under its belt, Toyota stands to improve its competitive position in this recession, according to many CAPS members. Meanwhile, Ford (NYSE: F) and General Motors (NYSE: GM) should only get worse.        

Of course, there's a lot more devil in the details of these buy-side opinions, which is why CAPS is such a great resource to check and balance your own analysis. You can read the bullish and bearish sides to every stock. To see what the very best CAPS members are saying now about Toyota, click over to Motley Fool CAPS and have a look. It's all free, and your opinion's welcome, too.

More Foolishness:

“Make Big Money With Options” Motley Fool CFO Ollen Douglass recently made over $100,000 buying options on 7 well known stocks. Now we’re committed to turning his small fortune into a massive one! And we want you to join us! Enter your email address to hear more:

The Motley Fool Global Gains team has traversed the globe, scouring the world for what they believe will be some of the greatest investment opportunities in the coming decades. Check out what they are recommending today with a free trial for 30 days.

Fool contributor Dave Mock considers "living large" a box of cookies and the TV remote. He owns no shares of companies mentioned here. Nissan is a Motley Fool Global Gains pick. The Fool's disclosure policy gives bonus points and gold stars for good girls and boys.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 13, 2009, at 3:54 PM, PennyPincher12 wrote:

    I own Toyota shares. Wish I never bought, never the less it's trading below book value right now and I would never sell a stock below book. When it gets up to $80, I'm out.

  • Report this Comment On March 13, 2009, at 4:11 PM, gscott12 wrote:

    Speaking from someone working inside the automotive industry, I wouldn't recommend buying Toyota.

    1) The timing is bad. Auto sales are still incredibly depressed. Who knows how long it will last. Wait for an uptick.

    2) Yen is strong. Historically, Toyota has made a huge chunk of its money in the US. The Japanese government usually intervened to keep the Yen low and profits up. Lately the Yen has surged to historically high levels. Toyota has most of its production eggs in the Japan basket. A high Yen makes it very uncompetitive. This will make it very hard for Toyota to make money.

    3) Losing their edge. With recent quality slips, and the domestics improving in quality you have to wonder how sharp Toyota's edge really is. They are even losing their edge on Green. Ford's Fusion Hybrid gets a full 8 MPG better than the comparable Camry Hybrid. Honda's Insight is several thousands cheaper than the equivalent Prius.

Add your comment.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 851404, ~/Articles/ArticleHandler.aspx, 12/2/2009 8:02:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Is Everybody Losing It in Finance's Nervous Breakdown?

Related Tickers

7/31/2009 4:00 PM
NSANY $14.49 Down +0.00 +0.00%
Nissan Motor Co.,… CAPS Rating: **
T $27.18 Up +0.24 +0.89%
AT&T, Inc. CAPS Rating: ****
TM $81.45 Up +2.91 +3.71%
Toyota Motor Corp… CAPS Rating: ****
F $8.88 Down -0.01 -0.11%
Ford Motor Company CAPS Rating: **
GM $0.75 Down +0.00 +0.00%
General Motors Cor… CAPS Rating: *
HMC $32.36 Up +1.37 +4.42%
Honda Motor Co., L… CAPS Rating: *****
CLNE $11.88 Up +0.18 +1.54%
Clean Energy Fuels… CAPS Rating: ****

Community: Investing Wiki

Term Of The Hour

Stock market crash: A stock market crash is a sudden and precipitous drop in the stock market averages.

Want to learn more or edit this definition?
Click here to read more!