Ticker: $TM
Description of why you are requesting DD:
I was car shopping and Consumer Report said Camry and Avalon were top picks for 2022. Did a bit more digging and found the linked articles. I have no idea what I am doing but maybe this is undervalued? Could somebody with grey matter between their ears take a look at this?
Applicable links to news articles or Reddit analysis:
Toyota Busts The Car Microchip Shortage
https://www.reuters.com/business/autos-transportation/toyota-build-new-battery-plant-north-carolina-sources-2021-12-06/
They will probably not have a stellar upcoming earnings report due to the limitation in production. They actually reported a decrease in revenue in their last earnings compared to the quarter before. The Toyota Camry has been neck and neck with the Honda Accord for best selling sedans in the U.S. for the last 15 years it seems so this is nothing new. Toyota has done exceptionally well over the years with lines such as the Camry and Corolla, and done well the most recent years with the Prius. Their Tacoma/Tundra pickups are great vehicles, but they don’t sell anywhere near as many as say Ford does with the Ranger/F150. They also do quite well with their luxury line of cars under the Lexus brand.
This one is a hard one to gauge as far as valuation. It’s a great company and might be great for a long term buy, but they are only up $80 from their 03/2020 low. This is one of those low volume, long term holds that is probably one that I would try to get in on in the $140 - $160 range. Current price seems a little elevated given the issues they’ve faced over 2021.
Also, BMW did a decent job building their newest Supra.