Toyota Is Gearing Up For A Big Move
With OEM auto manufacturers and start-ups around the world ramping production of electric vehicles, it is no surprise to hear Toyota (NYSE:TM) is doing the same. Recently criticized for its focus on hybrid vehicles, the company is shifting that focus to battery-electric vehicles with the launch of new models.
What is a surprise is the speed at which Toyota plans to make this move. The company is already a lead in the hybrid/BEV market and says it’s going to launch three new models this year alone, with more on the horizon. Two of the models will be pure BEV and rechargeable via external means. One of the models will be a PHEV or Plug-In Hybrid Electric Vehicle, a hybrid whose battery can also be charged via external means. The goal? For EV to account for 25% of sales by 2025 and 70% by the end of the decade.
"We believe the fastest way to lower greenhouse gases in the transportation sector is to offer drivers lower carbon choices that meet their needs," says Toyota Research Institute CEO Gill Pratt. "At every price point and with multiple powertrains, we can put more people in cleaner automobiles across North America to have the greatest near-term impact on total carbon emissions,"
What he doesn’t say is that the EV market is growing at a high double-digit CAGR and the estimates are accelerating. That alone is enough for any OEM to want in on EV and that goes doubly for market-leader Toyota. Toyota Motor North America has 40% of the total NA market share in alternative fuels including healthy portions of both the fuel-cell and hybrid/battery markets.
Toyota Beat Consensus And Raised Guidance
Auto sales are down globally due to the pandemic but two things are clear in the Toyota sales figures. The first is that sales did not decline as much as first thought, the second is that the rebound is much stronger than previously estimated. The company’s 3rd quarter revenue shows not only sequential gains from the FQ1/calendar Q2 lows but a YOY acceleration as well.
The company’s net consolidated revenue jumped 7.1% in the quarter to beat the consensus by 760 basis points and negating an expected decline. Net income increased by 14% and the guidance for next quarter is positive. The company is expecting to sell roughly 7.6 million in the fiscal year ending March 2021, up from the 7.5 million last forecast, and this could be a cautious outlook.
The Chinese Passenger Car Association says total sales in China grew 25.7% over last year to set the fastest pace since 2016. The salewere led by electric vehicles which surged 281% from the prior year. Competitor Nissan Motors revealed its sales in China grew 25% for the month, there is no word yet out of Toyota. If the rest of the world follows in China’s footsteps car sales in the first half of calendar 2021 could be robust.
The Technical Outlook: Toyota Looks Ready To Pop
Aside from the choppy nature of Toyota’s price chart, a result of its being traded in so many different time zones, the stock looks ready to pop. The price action has been ratcheting steadily higher along with the global rebound in auto sales and the latest is very bullish. Prices popped in the wake of the Q4 release and are now consolidating near the recent highs and above the mid-point of the February 10th Long-White-Candle. With car sales on the rise and the indicators bullish the consolidation may turn into a bullish Flag Pattern. If so, a break to the upside bould result in a move worth $20 or about 12.5% of upside.
Featured Article: What are popular green investing opportunities?7 Great Dividend Stocks to Buy For a Comfortable Retirement
There are people who will say the day of set it and forget it retirement accounts are over. But it’s a narrative we’ve heard before. The truth is the formula for saving for and enjoying a comfortable retirement, like the formula for weight loss, hasn’t really changed. A lot depends on whether an individual has the discipline to see it through.
Dividend stocks remain one of the core elements of a retirement portfolio. As individuals near retirement the ability to reinvest dividends allows for a greater total return. And once individuals need to live off their portfolio, the dividends provide a source of income without having to tap their principal.
However, not all dividend stocks are the same and many investors get sucked in by the allure of a high-yield dividend stock. But what you’re really looking for are companies with a history of increasing its dividend. The ability to increase a dividend over time illustrates that the company has a business model that can hold up regardless of how the broader economy is performing.
In this special presentation, we’ll highlight seven stocks that individuals can buy today to capture a stable, recurring dividend.
View the "7 Great Dividend Stocks to Buy For a Comfortable Retirement"
Companies Mentioned in This Article
Compare These Stocks
Add These Stocks to My Watchlist