Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

Honda Motor Company, Ltd.

Honda HMC reported earnings of 97 cents per share for the first quarter of fiscal 2026, topping the Zacks Consensus Estimate of 51 cents. The bottom line, however, declined from the year-ago quarter’s earnings of $1.57 per share. Quarterly revenues totaled $37 billion, which lagged the Zacks Consensus Estimate of $37.8 billion but came ahead of the year-ago period’s figure of $34.7 billion.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
Segmental Highlights
For the three-month period, which ended on June 30, 2025, revenues from the Automobile segment increased 1.1% year over year to ¥3.54 trillion ($24.4 billion). The segment registered an operating loss of ¥29.6 billion ($204 million) as against an operating income of $222.8 billion in the corresponding quarter of fiscal 2025.
Revenues from the Motorcycle segment came in at around ¥951.6 billion ($6.58 billion), which increased 1.5% year over year. The unit’s operating profit came in at ¥189 billion ($1.30 billion), up 6.8% year over year.
Revenues from the Financial Services segment totaled ¥832.6 billion ($5.76 billion), down 11.4% year over year. The unit’s operating profit remained flat year over year at ¥85 billion ($588 million).
Revenues from Power Product and Other Businesses came in at ¥92.8 billion ($641 million), down 2.2% year over year. The segment’s operating loss narrowed to ¥219 million compared with the operating loss of ¥753 million incurred in the same period last year.
Financials & FY26 View
Consolidated cash and cash equivalents were ¥4.01 trillion ($27.7 billion) as of June 30, 2025. Long-term debt was around ¥6.95 trillion ($48.1 billion) as of June 30, 2025.
Honda projects fiscal 2026 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 14.25 million units, 2.83 million units and 3.67 million units, respectively. The forecast implies growth of 4.1% year over year in the Motorcycles unit. However, Automobile and Power Product Unit sales are likely to decline 0.3% and 0.8% year over year in fiscal 2026.
For fiscal 2026, Honda forecasts revenues of ¥21.1 trillion, implying a decline of 2.7% year over year. Operating profit is envisioned at ¥700 billion, indicating a contraction of 42.3% year over year. Pretax profit is forecasted to be ¥710 billion, suggesting a drop of 46.1% year over year. The muted guidance comes amid macroeconomic and tariff-related challenges. The company will pay an interim and year-end dividend of ¥35/share each in fiscal 2026.
Other Auto Giant Releases
General Motors GM reported second-quarter 2025 adjusted earnings of $2.53 per share, which surpassed the Zacks Consensus Estimate of $2.39. The bottom line, however, decreased from the year-ago quarter’s $3.06. Revenues of $47.12 billion beat the Zacks Consensus Estimate of $46.25 billion but fell from $47.97 billion recorded in the year-ago period.
It had cash and cash equivalents of $22.38 billion as of June 30, 2025. The long-term automotive debt at the end of the quarter was $15.48 billion. Net automotive cash provided by operating activities amounted to $4.65 billion during the quarter under review.
Ford Motor Company F reported second-quarter 2025 adjusted earnings per share of 37 cents, which surpassed the Zacks Consensus Estimate of 34 cents but declined from 47 cents recorded in the year-ago quarter. The company’s consolidated second-quarter revenues came in at $50.18 billion, up 5% year over year. F’s total automotive revenues came in at $46.94 billion, beating the Zacks Consensus Estimate of $41.72 billion and rising from $44.81 billion generated a year ago.
It reported adjusted free cash flow of $2.83 billion for the quarter. It had cash and cash equivalents of $23 billion as of June 30, 2025. Long-term debt, excluding Ford Credit, totaled $16.74 billion on June 30, 2025.
Tesla TSLA reported second-quarter 2025 earnings per share of 40 cents, which topped the Zacks Consensus Estimate of 39 cents but decreased from the year-ago figure of 52 cents. Total revenues of $22.5 billion surpassed the consensus mark of $22.4 billion but declined 12% year over year.
It had cash/cash equivalents/investments of $36.8 billion as of June 30, 2025, compared with $36.5 billion as of Dec. 31, 2024. Long-term debt and finance leases, net of the current portion, totaled $5.2 billion, down from $5.8 billion as of Dec. 31, 2024.
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Honda Q1 Earnings Surpass Expectations, Revenues Rise Y/Y

SoundHound AI Inc. SOUN — the conversational and agentic artificial intelligence (AI) specialist — reported impressive second-quarter 2025 earnings results. SOUN reported quarterly adjusted loss of $0.03 per share, narrower than the Zacks Consensus Estimate of a loss of $0.06. This also compares to a loss of $0.11 per share a year ago. Quarterly revenues of $42.7 million were up 217% year over year, beating the Zacks Consensus Estimate of $33 million.
SoundHound AI reported second-quarter earnings results on Aug. 7 after the closing bell. On Aug. 8, its stock priced soared 26.4%. Despite this rally, the stock is a major laggard this year. Shares of SOUN have plummeted 19.8% year to date. The broad-market benchmark — the S&P 500 Index — is up 8.5% year to date while the tech-heavy Nasdaq Composite is up 10.9%.
Image Source: Zacks Investment Research
Technological Advancement
Recently, SOUN introduced Vision AI integrating visual understanding with its voice-first platform. Vision AI strategy will enable the company to improve both top and bottom lines by making huge inroads into the emerging voice commerce market.
In the last reported quarter, Enterprise AI recorded its highest number of monthly go-lives, driven by the Amelia 7 agentic AI platform. Restaurant AI deployments expanded to more than 14,000 locations, with more than 1,000 added in the second quarter.
Automotive growth was fueled by a major OEM win in China and higher ASPs from Generative AI integration. Voice Commerce pilots with global automakers and QSRs advanced toward commercialization, creating cross-sell opportunities across verticals.
SOUN is doubling down on its multilingual and multimodal foundation model, Polaris, as a cornerstone of its competitive edge in the voice AI landscape. In the multilingual voice AI race, the company faces stiff competition from tech giants such as Alphabet Inc. GOOGL, Amazon.com Inc. AMZN and Baidu Inc. BIDU.
In this regard, the integration of Polaris across acquisitions such as SYNQ3, Allset, and Amelia has already led to enhanced upsell and cross-sell traction across verticals, further strengthening its value proposition.
Robust Clientele
SOUN has a powerful list of clients, especially in the automotive vertical. Its major clients include, Mercedes-Benz of Germany, Honda Motor Co. HMC of Japan and Hyundai Motor Co. of South Korea.
On Aug 5, management said that its advanced voice assistant with integrated Generative AI, SoundHound Chat AI Automotive, has been rolled out to vehicles of three major global automotive brands across North America. SOUN estimates that in-car voice commerce represents up to a $35 billion annual opportunity for automakers.
Solid Guidance
Management raised its 2025 revenue outlook to $160 – $178 million, citing strong close rates and expanding AI adoption. Previously, management had guided sales between $157 million and $177 million. The mid-point of the current guidance represents 99.5% year-over-year sales growth.
Sequential growth is expected in the second half, with the fourth quarter anticipated to outpace the third quarter on seasonal enterprise and automotive momentum. SOUN projects adjusted EBITDA profitability by year-end 2025, supported by ongoing cost synergies, cloud optimizations, and scaling Voice Commerce opportunities.
Attractive Estimate Revisions
For third-quarter 2025, the Zacks Consensus Estimate currently shows revenues of $44.69 million, suggesting an increase of 78.1% year over year and EPS of -$0.04, indicating an improvement of 33.3% year over year. The Zacks Consensus Estimate for current-quarter earnings has improved 20% over the last 90 days.
For full-year 2025, the Zacks Consensus Estimate currently shows revenues of $167.3 million, suggesting an increase of 97.5% year over year and earnings per share of -$0.16, indicating an improvement of 84.6% year over year. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the last 90 days.
Image Source: Zacks Investment Research
Lucrative Valuation
The stock price of SoundHound AI is trading at a 45.8% discount to its 52-week high. SOUN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This mid-cap voice AI specialist has been benefiting from accelerating adoption across enterprise, automotive, and restaurant verticals, along with solid early traction for its agentic AI and Voice Commerce initiatives.
SOUN’s technological innovations, strong client base and diversification into various business verticals are expected to generate momentum for its stock price movement in the near future.
Image Source: Zacks Investment Research
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is SoundHound AI a Lucrative Bet on Long-Term Potential on Voice AI?

Pre-market futures are up today, led by foreign auto companies — particularly those in Japan. A new trade agreement was announced that lowers tariffs on Japanese imported autos to +15% from the +27.5% recently slapped on by President Trump. Sweetening the deal is a reported $550 BILLION in investments and loans.
Thus, we see this morning Toyota Motors TM up +14% in early trading, with Honda Motor Co. HMC +11%. Toyota had been saddled with a Zacks Rank #5 (Strong Sell) and Honda with a #4 (Sell), with double-digit earnings losses expected in quarterly reports early next month. EU automakers are hopeful for a similar deal, as we see companies like Stellantis STLA up +6% ahead of today’s open.
Thus, major indexes are up fairly robustly. The Dow is +240 points at this hour, +0.54%, while the S&P 500 — riding successive all-time closing highs — is +24 points, +0.38%. The Nasdaq is creeping higher, +24 points or +0.10%, while the small-cap Russell 2000 is leading the pack again: +19 points, +0.87%. Bond yields continue to quiet: +4.37% on the 10-year and +3.85% on the 2-year.
Q2 Earnings This Morning at a Glance: T, NEE
The big Q2 reports happen today after the market closes, but AT&T T posted modest beats on both top and bottom lines this morning in the telecom major’s Q2 report. Earnings of 54 cents per share outperformed the Zacks consensus by 3 cents, with revenues of $30.85 billion up +1% from estimates, largely on improved subscriber sales in the quarter. Yet shares are down -2.5% in early trading, after gaining +20% year to date.
NextEra Energy NEE also outpaced expectations by 3 cents on its bottom line, with earnings of $1.05 per share, even as revenues of $6.7 billion missed the Zacks consensus by -7.28%. However, steady guidance and a solid dividend yield are helping the stop stay afloat +0.4% in pre-market action. NEE is +8% year to date.
What to Expect from the Stock Market Today
After the opening bell, Existing Home Sales for June is due for release. Analysts expect a range-bound number where we’ve been the past few months, around 4 million seasonally adjusted, annualized units. Last time around, the Northeast, Midwest and South all saw sales growth from existing homes; only the West was negative. The median existing home sale price a month ago was $422,800.
Also, major Q2 earnings reports are out after the close, headlined by Alphabet GOOGL and Tesla TSLA — two of the so-called “Magnificent 7” stocks. Yet digging into these charts, we can see this is very much a tale of two disparate realities. While Alphabet expects higher than +13% earnings growth and better than +11% revenue gains, Tesla is expected to be down -25% on its bottom line and -12% on the top. GOOGL is riding a streak of 9-straight quarters beating earnings, while Tesla has missed in 6 of its last 8.
We also expect to hear from IBM IBM, Southwest Airlines LUV, ServiceNow NOW and Las Vegas Sands LVS. We’re now in the heart of Q2 earnings season, as we’re hearing from multiple companies in multiple sectors on the same day (as opposed to big banks at the start of the cycle and retailers at the end).
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Stellantis N.V. (STLA) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Markets in Green Amid Trade Deal With Japan

Wednesday, July 23, 2025
Pre-market futures are up today, led by foreign auto companies — particularly those in Japan. A new trade agreement was announced that lowers tariffs on Japanese imported autos to +15% from the +27.5% recently slapped on by President Trump. Sweetening the deal is a reported $550 BILLION in investments and loans.
Thus, we see this morning Toyota Motors TM up +14% in early trading, with Honda Motor Co. HMC +11%. Toyota had been saddled with a Zacks Rank #5 (Strong Sell) and Honda with a #4 (Sell), with double-digit earnings losses expected in quarterly reports early next month. EU automakers are hopeful for a similar deal, as we see companies like Stellantis STLA up +6% ahead of today’s open.
Thus, major indexes are up fairly robustly. The Dow is +240 points at this hour, +0.54%, while the S&P 500 — riding successive all-time closing highs — is +24 points, +0.38%. The Nasdaq is creeping higher, +24 points or +0.10%, while the small-cap Russell 2000 is leading the pack again: +19 points, +0.87%. Bond yields continue to quiet: +4.37% on the 10-year and +3.85% on the 2-year.
Q2 Earnings This Morning at a Glance: T, NEE
The big Q2 reports happen today after the market closes, but AT&T T posted modest beats on both top and bottom lines this morning in the telecom major’s Q2 report. Earnings of 54 cents per share outperformed the Zacks consensus by 3 cents, with revenues of $30.85 billion up +1% from estimates, largely on improved subscriber sales in the quarter. Yet shares are down -2.5% in early trading, after gaining +20% year to date. For more on T’s earnings, click here. https://www.zacks.com/stock/news/2606931/att-t-surpasses-q2-earnings-and-revenue-estimates
NextEra Energy NEE also outpaced expectations by 3 cents on its bottom line, with earnings of $1.05 per share, even as revenues of $6.7 billion missed the Zacks consensus by -7.28%. However, steady guidance and a solid dividend yield are helping the stop stay afloat +0.4% in pre-market action. NEE is +8% year to date. For more on NEE’s earnings, click here.
What to Expect from the Stock Market Today
After the opening bell, Existing Home Sales for June is due for release. Analysts expect a range-bound number where we’ve been the past few months, around 4 million seasonally adjusted, annualized units. Last time around, the Northeast, Midwest and South all saw sales growth from existing homes; only the West was negative. The median existing home sale price a month ago was $422,800.
Also, major Q2 earnings reports are out after the close, headlined by Alphabet GOOGL and Tesla TSLA — two of the so-called “Magnificent 7” stocks. Yet digging into these charts, we can see this is very much a tale of two disparate realities. While Alphabet expects higher than +13% earnings growth and better than +11% revenue gains, Tesla is expected to be down -25% on its bottom line and -12% on the top. GOOGL is riding a streak of 9-straight quarters beating earnings, while Tesla has missed in 6 of its last 8.
We also expect to hear from IBM IBM, Southwest Airlines LUV, ServiceNow NOW and Las Vegas Sands LVS. We’re now in the heart of Q2 earnings season, as we’re hearing from multiple companies in multiple sectors on the same day (as opposed to big banks at the start of the cycle and retailers at the end).
Questions or comments about this article and/or author? Click here>>
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Stellantis N.V. (STLA) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Markets Shine on Japanese Auto Trade Deal

NIO Inc. (NIO) shares soared 10.8% in the last trading session to close at $5.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 31.8% gain over the past four weeks.
NIO stock surged after the company announced the L90’s official launch date. The model is set to launch on July 31, with deliveries starting on Aug. 1. Earlier this month, Morgan Stanley reaffirmed its “Buy” rating on NIO, highlighting the ONVO L90 launch as a key catalyst. The L90 is set to be one of the fastest-to-market models in NIO’s lineup.
This company is expected to post quarterly loss of $0.30 per share in its upcoming report, which represents a year-over-year change of +11.8%. Revenues are expected to be $2.76 billion, up 14.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For NIO, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NIO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
NIO belongs to the Zacks Automotive - Foreign industry. Another stock from the same industry, Honda Motor (HMC), closed the last trading session 0.3% higher at $30.41. Over the past month, HMC has returned 5.6%.
For Honda, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.51. This represents a change of -67.5% from what the company reported a year ago. Honda currently has a Zacks Rank of #4 (Sell).
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Strength Seen in NIO (NIO): Can Its 10.8% Jump Turn into More Strength?

In trading on Friday, shares of Honda Motor Co Ltd (Symbol: HMC) crossed above their 200 day moving average of $28.91, changing hands as high as $29.80 per share. Honda Motor Co Ltd shares are currently trading up about 3.4% on the day. The chart below shows the one year performance of HMC shares, versus its 200 day moving average:
Looking at the chart above, HMC's low point in its 52 week range is $23.41 per share, with $33.72 as the 52 week high point — that compares with a last trade of $29.73.
Cheap Consumer Stocks
SUNL Videos
HLN Stock Predictions
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Honda Motor Breaks Above 200-Day Moving Average - Bullish for HMC

Japan’s second-largest automaker, Honda Motor stock (NYSE: HMC), has largely moved sideways this year, returning about 2% since early January. Honda’s recent performance has been somewhat weak in the recent quarters. Over Q4 FY’25 (ended March 31), the company’s revenues missed estimates, coming in at about $35.1 billion, down from the year-ago figure of $36.5 billion, while earnings also fell short. While Honda’s motorcycle business has seen strong growth led by demand from Asian markets, its automobile business saw a drop in revenue amid headwinds in China. In North America, the company sold 1.65 million vehicles in FY’25, a slight uptick from the previous year, supported by stronger uptake of hybrid vehicles.
However, the 25% tariff on foreign automobile imports by the Trump Administration is likely to impact Honda’s U.S. business. Honda is looking to work around these tariffs, with reports indicating that it could manufacture its next-generation Civic hybrid, one of its most popular models, in the U.S., instead of Mexico. Honda has indicated that the impact of the tariffs imposed by the U.S. would be material to its business, with the situation also remaining fluid due to the frequent revisions in policy. Honda has guided net profit projections for 2026 coming in at 70.1% lower compared to FY’25, while revenues are projected to slip 6.4% year-over-year.
Is Honda Stock Still Attractive?
Investors are also likely concerned about Honda’s longer-term prospects. Honda doubled down on its EV strategy, boosting investments into EVs when demand is cooling and this is likely to weigh on profitability in the near term. It also remains to be seen if Honda can remain competitive in markets such as China, where local producers are seeing a surge in demand for their low-priced but very well-specced electrified vehicles. Moreover, Chinese-made vehicles are increasingly accepted globally, with China poised to become the world’s largest car exporter, overtaking Japan. Honda’s volumes in Asia declined by almost 28% year-over-year in FY’25. Besides this, the potential strengthening of the yen could also hurt Honda in the medium term. The yen has gained close to 8% versus the dollar over the last 12 months.
A stronger yen reduces the competitiveness of Honda’s exports from Japan and reduces its overseas earnings when translated back to yen. That being said, Honda’s stock valuation looks reasonable, trading at about 8x FY’25 earnings. The company’s low valuation, continued share buybacks, and potential growth in the hybrid space could help to support the stock through the current turmoil. We value Honda stock at about $32 per share, marginally ahead of the current market price. See our analysis of Honda Valuation for more details on what’s driving our valuation for Honda. Also, see our analysis of Honda Revenue for more details on Honda’s key revenue streams.
While Honda stock is facing risks from trade tensions and a shifting Asian market, investors might want to consider diversified approaches, such as the Trefis High Quality (HQ) Portfolio, that spread risk across multiple companies and sectors, rather than concentrating capital in individual positions. With a collection of 30 stocks, this portfolio has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

What's Happening With Honda Stock?

Skip to main content
Scorecard
The following are the top rated Consumer Discretionary stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ROSS STORES INC (ROST) is a large-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Ross Stores, Inc. is engaged in operating two brands of off-price retail apparel and home fashion stores-Ross Dress for Less (Ross) and dds DISCOUNTS. Ross is the off-price apparel and home fashion chain in the United States, with approximately 1,831 locations in 43 states, the District of Columbia, and Guam. Ross offers in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. Ross target customers are primarily from middle-income households. It also operates approximately 355 dds DISCOUNTS stores in 22 states. dds DISCOUNTS features more moderately-priced in- season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. It operates a total of approximately 2,186 stores.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO:
PASS
SALES AND P/E RATIO:
PASS
EPS GROWTH RATE:
PASS
TOTAL DEBT/EQUITY RATIO:
PASS
FREE CASH FLOW:
NEUTRAL
NET CASH POSITION:
NEUTRAL
Detailed Analysis of ROSS STORES INC
ROST Guru Analysis
ROST Fundamental Analysis
WILLIAMS-SONOMA INC (WSM) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Williams-Sonoma, Inc. is an omnichannel specialty retailer of products for the home. Its products, representing distinct merchandise strategies, such as Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow are marketed through e-commerce Websites, retail stores and direct-mail catalogs. These brands are also part of The Key Rewards, its loyalty and credit card program that offers members benefits across the Williams-Sonoma family of brands. Williams Sonoma products offer everything for cooking, dining and entertaining, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture and a vast library of cookbooks. It operates in the United States, Puerto Rico, Canada, Australia and the United Kingdom, offers international shipping to customers worldwide, and has unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO:
PASS
EARNINGS PER SHARE:
PASS
TOTAL DEBT/EQUITY RATIO:
PASS
FREE CASH FLOW:
NEUTRAL
NET CASH POSITION:
NEUTRAL
Detailed Analysis of WILLIAMS-SONOMA INC
WSM Guru Analysis
WSM Fundamental Analysis
BOOT BARN HOLDINGS INC (BOOT) is a mid-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Peter Lynch is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Boot Barn Holdings, Inc. is a lifestyle retailer of western and work-related footwear, apparel, and accessories in the United States. The Company operates through two segments: retail stores and e-commerce. The retail segment is a specialty retail store that sells western and work boots and related apparel and accessories. Its e-commerce segment sells its merchandise via the Internet. The Company carries an assortment of denim, western shirts, cowboy hats, belts and belt buckles, western-style jewelry, and accessories. The western assortment includes various brands, such as Ariat, Cinch, Cody James, Corral, Dan Post, Durango, El Dorado, Idyllwind, Justin, Laredo, Lucchese, Miss Me, Montana Silversmiths, Moonshine Spirit, Shyanne, Stetson, Tony Lama, Twisted X, Resistol and Wrangler. The work assortment includes rugged footwear, outerwear, overalls, denim, and shirts. Its other brand includes Dickies, Carhartt, Wolverine, and Hawx. It operates approximately 403 stores in 45 states.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO:
PASS
SALES AND P/E RATIO:
PASS
EPS GROWTH RATE:
PASS
TOTAL DEBT/EQUITY RATIO:
PASS
FREE CASH FLOW:
NEUTRAL
NET CASH POSITION:
NEUTRAL
Detailed Analysis of BOOT BARN HOLDINGS INC
BOOT Guru Analysis
BOOT Fundamental Analysis
GREEN BRICK PARTNERS INC (GRBK) is a mid-cap value stock in the Construction Services industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Green Brick Partners, Inc. is a diversified homebuilding and land development company. The Company is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, title and mortgage services, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. The Company operates through three segments: Builder operations Central, Builder operations Southeast, and Land Development. The Builder operations Central segment represents operations by its builders in Texas. The Builder operations Southeast segment represents operations by its builders in Georgia and Florida. The Land Development segment acquires land for the development of residential lots that are transferred to its controlled builders or sold to third party homebuilders. Its homebuilding projects include single family homes, townhomes, condos, luxury homes, and patio homes.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO:
PASS
SALES AND P/E RATIO:
PASS
INVENTORY TO SALES:
FAIL
EPS GROWTH RATE:
PASS
TOTAL DEBT/EQUITY RATIO:
PASS
FREE CASH FLOW:
NEUTRAL
NET CASH POSITION:
NEUTRAL
Detailed Analysis of GREEN BRICK PARTNERS INC
GRBK Guru Analysis
GRBK Fundamental Analysis
HONDA MOTOR CO LTD (ADR) (HMC) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Honda Motor Co Ltd is a Japan-based company principally engaged in the motorcycle business, the automobile business, the financial service business and the life creation business. The Company operates through four business segments. The Motorcycle segment is engaged in the research and development, production and sale of motorcycles, all-terrain vehicles (ATVs), side-by-side vehicles and related parts. The Automobile segment is engaged in the research and development, production and sale of automobiles and related parts. The Financial Service segment is engaged in the sales financing and leasing of its products. The Power Products and Other Business segment is engaged in the research and development, production and sale of power products and related parts.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO:
PASS
SALES AND P/E RATIO:
PASS
INVENTORY TO SALES:
PASS
EPS GROWTH RATE:
PASS
TOTAL DEBT/EQUITY RATIO:
FAIL
FREE CASH FLOW:
NEUTRAL
NET CASH POSITION:
NEUTRAL
Detailed Analysis of HONDA MOTOR CO LTD (ADR)
HMC Guru Analysis
HMC Fundamental Analysis
Peter Lynch Portfolio
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© 2025, Nasdaq, Inc. All Rights Reserved.
Most Active

Validea's Top Consumer Discretionary Stocks Based On Peter Lynch - 6/12/2025

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Value Line Dividend Index Fund ETF (Symbol: FVD), we found that the implied analyst target price for the ETF based upon its underlying holdings is $48.99 per unit.
With FVD trading at a recent price near $44.36 per unit, that means that analysts see 10.44% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FVD's underlying holdings with notable upside to their analyst target prices are Diageo plc (Symbol: DEO), Toyota Motor Corporation (Symbol: TM), and Honda Motor Co Ltd (Symbol: HMC). Although DEO has traded at a recent price of $108.08/share, the average analyst target is 15.96% higher at $125.33/share. Similarly, TM has 14.34% upside from the recent share price of $182.88 if the average analyst target price of $209.10/share is reached, and analysts on average are expecting HMC to reach a target price of $33.60/share, which is 13.59% above the recent price of $29.58. Below is a twelve month price history chart comparing the stock performance of DEO, TM, and HMC:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
First Trust Value Line Dividend Index Fund ETF
FVD
$44.36
$48.99
10.44%
Diageo plc
DEO
$108.08
$125.33
15.96%
Toyota Motor Corporation
TM
$182.88
$209.10
14.34%
Honda Motor Co Ltd
HMC
$29.58
$33.60
13.59%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Materials Stocks Hedge Funds Are Buying
ARDS shares outstanding history
Funds Holding GSAX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Implied FVD Analyst Target Price: $49

Tuesday, May 27, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including The Coca-Cola Co. (KO), Abbott Laboratories (ABT) and AT&T Inc. (T). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Up on New Tariff Developments
Today's Featured Research Reports
Coca-Cola’s shares have outperformed the Zacks Beverages - Soft drinks industry over the year-to-date period (+16% vs. +8%). The company delivered a strong first-quarter 2025, marking its ninth consecutive quarter of beating top- and bottom-line expectations. First-quarter 2025 performance was driven by broad-based growth, improved price/mix, and effective execution of its all-weather strategy, which blends marketing, innovation, and revenue growth management.
Innovation and marketing continue to drive brand momentum, with impactful campaigns and product launches. However, volume softness in key markets like North America and Mexico, due to weather, timing shifts, and weaker sentiment, tempered momentum.
Currency headwinds, higher taxes, and rising interest costs continue to be concerns. Despite reaffirming its 2025 guidance, management signaled a cautious near-term outlook, describing Q2 as potentially "choppy."
(You can read the full research report on Coca-Cola here >>>)
Shares of Abbott have outperformed the Zacks Medical - Products industry over the year-to-date period (+15.7% vs. +4.3%). The company’s pipeline is unlocking new growth opportunities, supporting the company’s positive momentum and strong growth outlook for 2025. Freestyle Libre, Lingo and Libre Rio CGM devices are on a great trajectory. Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business.
Abbott is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. Within Nutrition, despite softness in its international pediatric arm, Abbott is regaining market share banking on strong Adult Nutrition business.
Yet, the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Headwinds such as tough macro conditions and foreign exchange also adds to the worry.
(You can read the full research report on Abbott here >>>)
AT&T’s shares have outperformed the Zacks Wireless National industry over the year-to-date period (+23% vs. +13.5%). The company is witnessing healthy momentum in its postpaid wireless business with a lower churn rate and increased adoption of higher-tier unlimited plans. AT&T expects to gain a competitive edge over rivals through edge computing services that allow businesses to route application-specific traffic where they need it and where it’s most effective.
Acquisition of Lumen’s fiber internet connectivity business will significantly expand market reach. Collaboration with Ericsson to deploy a commercial-scale open radio access network will likely bring long term benefits.
However, the company is facing a steady decline in linear TV subscribers and legacy services. Stiff competition in the U.S. wireless market remains a major concern. As AT&T tries to woo customers with discounts, freebies and cash credits, margin pressures tend to rise.
(You can read the full research report on AT&T here >>>)
Other noteworthy reports we are featuring today include Honda Motor Co., Ltd. (HMC), Vale S.A. (VALE) and Centene Corporation (CNC).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Coca-Cola's (KO) All-Weather Strategy to Boost the Top Line
Strength in Diabetes Care Aids Abbott (ABT), FX Woes Stay
AT&T (T) Rides on Healthy Demand, Strategic Acquisition
Featured Reports
Surge in Hybrid Adoption Aids Honda (HMC), Rising Capex Ails
Per the Zacks analyst, the surge in hybrid adoption is boosting Honda's sales. However, rising capex requirements are likely to hurt the company's cash flows.
Investments, Cost Cuts Aid Vale (VALE) Amid Price Volatility
Per the Zacks analyst, investment in growth projects, focus on improving quality and productivity and lowering costs will fuel Vale's growth in the backdrop of volatile iron ore prices.
Strategic Acquisitions and High Premiums Aid Centene (CNC)
Per the Zacks analyst, strategic buyouts are expanding Centene's markets and membership. Additionally, rising commercial premiums are boosting revenue.
Corpay (CPAY) Grows Organically, High Interest Expense Ail
Per the Zacks analyst, Corpay's organic growth is fueled by rise in volume and revenues per transaction in its payment programs. Rising interest expense affects bottom-line.
Robust Growth in Payment Solutions Drives Jack Henry (JKHY)
Per the Zacks Analyst, Jack Henry is benefiting from strength in its card processing solutions, driven by expanding transaction volumes.
High Rates Aid East West Bancorp (EWBC), Asset Quality Ails
Per the Zacks analyst, decent loan demand, relatively high rates and diverse fee income streams will aid East West Bancorp's revenues, while weak asset quality and subdued mortgage business are woes.
Halozyme's (HALO) ENHANZE Drug Delivery Technology Aid Growth
Per the Zacks Analyst, Halozyme's collaboration deals with large pharma companies related to ENHANZE technology, drives revenues growth. Over dependence on partners for revenues remains a concern.
New Upgrades
Focus on Regulated Energy Delivery Aids MDU Resources (MDU)
Per the Zacks analyst, MDU Resources benefits from its focus on regulated energy delivery business. Its investment of $3.06 billion through 2029 should improve the reliability of its services.
EverQuote (EVER) Boasts Revenue Growth, Solid Balance Sheet
Per the Zacks analyst, consumer traffic, quote request volume and innovative advertiser products and services drive EverQuote revenues. Its strong balance sheet enables it to fulfill debt obligations.
Product Launch & Expansion Efforts Aid JAKKS Pacific (JAKK)
Per the Zacks analyst, JAKKS Pacific benefits from solid consumer demand for licensed toys and core product lines. Also, focus on FOB business model and retail expansion efforts bode well.
New Downgrades
USA Compression (USAC) Faces Flat Horsepower Growth
The Zacks analyst warns that USA Compression's near-term outlook is modest, as horsepower growth lags forecasts and 2025 gains rely heavily on pricing rather than volume expansion.
High Operating Costs are likely to hurt Abercrombie's (ANF) Margin
Per the Zacks analyst, Abercrombie is reeling under rising operating expenses and elevated freight rates. It expects higher operating and freight costs to hurt margins in the first-half of fiscal 2025
High Costs, Stiff Competition Ail Evercore's (EVR) Growth
Per the Zacks analyst, high costs will impede Evercore's bottom-line growth while volatility of institutional AUM will hurt revenues. Stiff competition creates pricing and competitive pressures.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
VALE S.A. (VALE) : Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
Centene Corporation (CNC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	7.75 18.21
Price/Sales	0.32 0.65
P/B	0.51 1.75
P/FCF	88.27 14.40

Indicator	TTM Median
ROE	8.62 15.91
ROA	3.84 5.60
ROI	5.98 9.40
Net Worth	43.09 0.88
Quick Ratio	1.12 0.91
Current Ratio	1.43 1.44

Indicator	TTM Median
Net Profit Margin	5.30 6.42
Operating Margin	6.88 8.93
Gross Margin	21.74 38.46
Return on tangible equity	9.32 23.67

Indicator	TTM Median
EPS	1.06 0.44
EPS Forecast	0.85 0.42
Revenue	34.59B 182.00M
Gross Profit	7.66B —
EBITDA	4.31B —

Honda Motor Company, Ltd.

Fundamental HMC

Valuation

Debts

Efficiency

Other ratios

Revenue