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Toyota (TM) Hits 52-Week High: What's Driving the Stock?

Shares of Toyota Motor Corporation TM scaled a 52-week high of $128.44 on Dec 29, before eventually closing the day at $127.17.

Toyota has a market cap of roughly $187 billion. Average volume of shares traded is around 128,025. The company has an expected long-term EPS growth of 6.2%.

The stock has seen the Zacks Consensus Estimate for third-quarter fiscal 2018 as well as annual fiscal earnings being revised 4.3% and 5.6% upward, respectively, over the last 60 days.

Shares of Toyota have gained 5.7% in the past three months, underperforming the industry’s 6.4% rise.

Driving Factors

Toyota has been ramping up its electric vehicle (EV) operations in order to be in sync with its competitors. In December, the company announced its plan to develop and launch hybrid electric vehicles, plug-in hybrid electric vehicles, battery electric vehicles and fuel cell electric vehicles (FCVs) during the decade of 2020-2030. Also, by 2030, it plans to sell 5.5 million of electrified vehicles.

Moreover by 2025, the company aims to unveil either all electrified Toyota or Lexus models or have an electrified option in the line-up.

Further, the company is collaborating with big players like Panasonic Corporation to develop batteries to be used for its production of EVs.

Toyota Motor Corp Ltd Ord Price and Consensus

Toyota has also been teaming up with various partners to introduce and increase manufacturing of FCVs worldwide. The tie-up with Royal Dutch Shell last February was the most recent one, wherein both the companies had decided to construct seven fueling stations for hydrogen vehicles in California.

In December, the company reported to construct a megawatt-scale carbonate fuel cell power generation plant at the Port of Long Beach with a capacity to produce roughly 2.35 megawatts of electricity and 1.2 tons of hydrogen per day.

Toyota also engages in regular dividend payments and share repurchase programs to boost shareholders confidence in the company.

Zacks Rank & Other Stocks to Consider

Toyota sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the auto space include Oshkosh Corporation OSK, Gentex Corporation GNTX and Allison Transmission Holdings, Inc. ALSN. While Oshkosh sports the same bullish Zacks Rank of 1 as Toyota, Gentex and Allison Transmission carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oshkosh has an expected long-term growth rate of 16.5%. In the last three months, shares of the company have climbed 9%.

Gentex has an expected long-term growth rate of 9.7%. In the last three months, shares of the company have gained 2.9%.

Allison Transmission has an expected long-term growth rate of 10%. In the last three months, shares of the company have rallied 17.4%.

Zacks Editor-in-Chief Goes "All In" on This Stock

Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.

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Toyota Motor Corp Ltd Ord (TM): Free Stock Analysis Report
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Gentex Corporation (GNTX): Free Stock Analysis Report
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