Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.

Toyota Motor Corporation

Helicopters Are Out; eVTOLs Are In?

(RTTNews) - Japanese auto major Toyota Motor Corp. (TM) on Friday announced the world premiere of Lexus brand's Lexus LFA Concept, as well as TOYOTA GAZOO Racing or TGR's GR GT and GR GT3 flagship sports cars.
The Lexus LFA Concept is a concept model aimed at creating a battery electric vehicle or BEV sports car.
Further, TGR's GR GT is a new GR-brand flagship sports car that further advances the making of ever-better motorsports-bred cars, and the GR GT3 is a GR GT-based, FIA GT3-spec race car for all customers who want to win races. TGR publicly displayed under-development prototypes for the first time.
Both models feature the active adoption of new technologies and manufacturing methods, including Toyota's first all-aluminum body frame and a 4-liter, V8 twin-turbo engine.
Toyota said the three unveiled models are being positioned as its flagship sports cars, in the footsteps of the Toyota 2000GT and Lexus LFA.
According to the firm, the three models, together, symbolize "Toyota's Shikinen Sengu", a traditional Japanese shrine ritual, which involves rebuilding the shrine itself as well as recrafting its furnishings and ceremonial garments.
In Tokyo, Toyota shares were trading at 3,028.00 yen, down 2.42 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Toyota Premieres Lexus Brand's Lexus LFA Concept, TGR's GR GT, GR GT3 Sports Cars

(RTTNews) - Japanese auto major Toyota Motor Corp. (TM) reported Thursday that its worldwide sales and production in the month of October increased from last year.
In October, worldwide production grew 3.1 percent year-over-year to 1.05 million units. Production inside Japan increased 5.7 percent from last year to 415,331 units and production outside Japan went up 1.4 percent to 638,025 units.
Production of Toyota brand including Lexus was 926,987 units, up 3.8 percent from the prior year with growth in and outside Japan.
Daihatsu production edged up 0.9 percent, as growth in Japan was nearly offset by weak production outside. Meanwhile, Hino production plunged 25 percent with double-digit drop in both regions.
The company's wordwide sales in October grew 3 percent year-over-year to 1 million units. Sales inside Japan were 200,045 units, and sales outside Japan were 803,586 units, both 3 percent higher than the previous year.
Toyota brand including Lexus sold 922,087 vehicles, a growth of 2.1 percent from last year as drop in Japan was offset by growth outside Japan.
Daihatsu sales grew 19.5 percent, with strong growth in Japan, nearly offset by weak sales outside.
Hino sales, meanwhile, fell 13.3 percent with drop in both regions.
In Tokyo, Toyota Motor shares were trading at 3,139.00 yen, down 0.064 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Toyota Motor Worldwide Production, Sales Rise In October

(0:50) - What Should Investors Know About Japan's New Prime Minister And Their Policies
(6:25) - What Is Currently Driving Japan’s Equity Rally?
(13:00) - ETFs Investors Should Consider When Looking For Exposure In Japan
(16:40) - What Other interests Should Investors Be Aware of When Investing In Japan
(19:25) - Episode Roundup: DXJ, OPPJ, EWJ, FLJP, FLJH
In this episode of ETF Spotlight, I speak with Jeremy Schwartz, Global Chief Investment Officer at WisdomTree Asset Management, about investing in Japan ETFs that have significantly outperformed the S&P 500 this year.
Japanese stocks surged last month after Sanae Takaichi became Japan’s first female Prime Minister. Takaichi is known as a protégé of former Prime Minister Shinzo Abe and a supporter of “Abenomics.”
Investors hope Takaichi will introduce aggressive fiscal spending, including increased defense spending and tax cuts to support economic growth. She has also pledged to boost investment in high-growth areas such as AI and semiconductors.
Overall, her policies appear supportive of Japanese equities. The yen, however, fell to a nine-month low recently as traders believe Takaichi prefers a looser monetary policy and may pressure the BOJ to postpone rate hikes.
Japan’s stock market was already performing well even before the election. Improved corporate governance and more shareholder-friendly policies have attracted global investors back into Japan.
Concerns about a potential bubble in NVIDIA NVDA and other AI beneficiaries have also drawn some investors to Japan. Japanese market valuations look very reasonable relative to those in the United States.
Warren Buffett’s endorsement has also helped Japanese equities. The Oracle of Omaha started investing in five Japanese trading houses in 2019 and has even compared their diversified business models to Berkshire Hathaway BRK.B itself.
Buffett has continued to increase his stake while effectively hedging the currency risk. The value of his positions topped $30 billion recently, according to CNBC. Earlier this year, he told shareholders that Berkshire will hold onto these investments for “50 years or forever.”
The WisdomTree Japan Hedged Equity Fund DXJ holds dividend-paying exporters like Toyota TM and hedges currency fluctuations, reducing the impact of yen movements on returns.
The WisdomTree Japan Opportunities Fund OPPJ assigns 45% of its weight to the "Buffett basket," which comprises his original investment in the five Japanese trading houses, and incorporates a dynamic currency hedge.
What are the biggest risks to Japanese stocks that investors should be aware of?Tune in to the podcast to learn more.
Be sure to look out for the next edition of ETF Spotlight, and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buffett Loves Japan. Should You?

The following are the top rated Consumer Discretionary stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
DILLARD'S INC (DDS) is a mid-cap growth stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Martin Zweig is 62% 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: Dillard's, Inc. is a retailer of fashion apparel, cosmetics and home furnishings. The Companys segments include the operation of retail department stores and a general contracting construction company. It operates 272 Dillards stores, including 28 clearance centers, and an Internet store at dillards.com offering a wide selection of merchandise including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods. The Company also operates a general contracting construction company, CDI Contractors, LLC (CDI), a portion of whose business includes constructing and remodeling stores for the Company. Its merchandise selections include its lines of exclusive branded merchandise, such as Antonio Melani, Gianni Bini, GB, Roundtree & Yorke and Daniel Cremieux. Its retail stores are located primarily in shopping malls and open-air centers throughout the southwest, southeast and Midwest regions of the United 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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
FAIL
Detailed Analysis of DILLARD'S INC
THOR INDUSTRIES INC (THO) is a mid-cap growth stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Martin Zweig is 62% 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: THOR Industries, Inc. is a manufacturer of recreational vehicles (RV). The Company manufactures a variety of RVs in the United States and Europe, and sells those vehicles, as well as related parts and accessories, primarily to independent, non-franchise dealers throughout the United States, Canada and Europe. Its segments include North American Towable Recreational Vehicles, North American Motorized Recreational Vehicles and European Recreational Vehicles. The North American Towable Recreational Vehicles segment consists of Airstream (towable), Heartland (including Cruiser RV and DRV), Jayco (including Jayco towable, Starcraft and Highland Ridge), Keystone (including CrossRoads and Dutchmen), and KZ (including Venture RV). The North American Motorized Recreational Vehicles segment consists of Airstream (motorized), Jayco (including Jayco motorized and Entegra Coach), Thor Motor Coach and the Tiffin Group. The European Recreational Vehicles segment consists of the EHG business.
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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of THOR INDUSTRIES INC
TOYOTA MOTOR CORP (ADR) (TM) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Martin Zweig is 62% 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: Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. The Company operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by the Company and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
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.
Detailed Analysis of TOYOTA MOTOR CORP (ADR)
DARDEN RESTAURANTS INC (DRI) is a large-cap growth stock in the Restaurants industry. The rating according to our strategy based on Martin Zweig is 62% 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: Darden Restaurants, Inc. is a restaurant company. The Company owns and operates full-service dining restaurants in the United States and Canada under the trade names Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Chuy's, Seasons 52, Eddie V's and Bahama Breeze. It owns and operates approximately 2,140 restaurants in the United States and Canada. Its segments include Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Businesses. Olive Garden is a full-service Italian dining restaurant operator in the United States. LongHorn Steakhouse is a full-service steakhouse restaurant, which features a variety of menu items including signature steaks and chicken, as well as salmon, shrimp, and burgers. Fine Dining includes Ruths Chris, The Capital Grille and Eddie Vs. Other businesses include Cheddars Scratch Kitchen, Yard House, Bahama Breeze, Seasons 52, and The Capital Burger.
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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of DARDEN RESTAURANTS INC
WINNEBAGO INDUSTRIES INC (WGO) is a small-cap growth stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Martin Zweig is 62% 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: Winnebago Industries, Inc. manufactures recreation vehicles (RVs) and marine products with a diversified portfolio used primarily in leisure travel and outdoor recreational activities. It also designs and manufacture advanced battery solutions that deliver house power, supporting internal electrical features and appliances for a variety of outdoor products including RVs, boats, specialty and other low-speed vehicles, as well as other industrial applications. Its segments include Grand Design towables, Winnebago towables, Winnebago motorhomes, Newmar motorhomes, Chris-Craft marine, Barletta marine, Winnebago specialty vehicles and Lithionics. It produces its towable RV units in Indiana; its motorhome RV units in Iowa and Indiana; its marine units in Indiana and Florida; and its battery solutions in Florida. The Company distributes its RV and marine products primarily through independent dealers throughout the United Statesand Canada, who then retail the products to the end consumer.
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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of WINNEBAGO INDUSTRIES INC
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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.

Validea's Top Consumer Discretionary Stocks Based On Martin Zweig - 11/20/2025

Toyota Motor Corporation TM, one of the leading automakers in the world in terms of sales and production, is likely to gain from an increase in sales volume. However, rising R&D expenses and capex remain a concern for the automaker.
Let’s see why you should retain this Zacks Rank #3 (Hold) stock in your portfolio.
Increase in Sales Volume, Investor-Friendly Move to Aid TM
The surge in hybrid adoption is boosting Toyota’s sales. The RAV4 model, with hybrid variants that make up about half of Toyota’s sales, is America's top-selling SUV. In May 2025, Toyota introduced the 2026 RAV4, which will have the same hybrid or plug-in hybrid options as before, but this time, a conventional version powered by a gasoline engine will not be available. This strategy will leverage TM’s dominant position in the hybrid market.
Upbeat outlook for fiscal 2026 sales sparks optimism. The company expects to sell 9.8 million units this fiscal year, up from 9.36 million sold in fiscal 2025. Toyota and Lexus vehicle sales are estimated to reach 10.5 million units, up 2.2% from fiscal 2025, on the back of strong demand in North America. Electrified vehicle sales are expected to reach 5.12 million units, up from 4.75 million units in fiscal 2025. Higher expected year-over-year sales are likely to boost the company’s top-line growth in fiscal 2026.
Toyota aims to lower hydrogen costs by promoting its use in commercial vehicles. It plans to sell its hydrogen-powered units externally, encouraging broader adoption beyond its own fleet. By increasing overall hydrogen demand, the company expects economies of scale to drive down production and distribution costs. This strategy also supports the expansion of hydrogen infrastructure, further lowering long-term expenses. Its cost optimization efforts are expected to be a 250-billion-yen tailwind to consolidated operating income in fiscal 2026.
Toyota’s investor-friendly moves also spark optimism. In fiscal 2025, the company paid a total dividend of 90 yen a share, up from 75 yen in fiscal 2024. For fiscal 2026, Toyota has provided a dividend forecast of 95 yen per share. Over the past five years, Toyota’s dividends have grown at an annualized rate of 10.04%.
Rising Expenses & High Debt to Ail Toyota
Operating income for fiscal 2026 is projected to be ¥3.4 trillion, indicating a contraction of 29% year over year. Material prices, forex rate and tariffs imposed by the U.S. government on vehicle and vehicle parts imports, along with investment in human resources and growth areas, are expected to be a big hit on the operating profits in the current fiscal. In fiscal 2026, Toyota plans to spend a total of more than 2 trillion yen on these. Pretax profit is estimated to be ¥4.18 trillion, implying a decline from ¥6.41 trillion generated in fiscal 2025.
High R&D expenses on advanced technologies and alternative fuels for the development of electric and autonomous vehicles bode well for the future but are likely to limit the near-term margins. For fiscal 2026, R&D costs are expected to be ¥1.42 trillion, implying an uptick from ¥1.33 trillion recorded in fiscal 2024.
Capital expenditure for fiscal 2026 is expected to increase from ¥2.13 trillion to ¥2.3 trillion. While such massive spending might boost long-term prospects, near-term cash flows could be under pressure.
Toyota's rising debt levels play spoilsport. Long-term debt was ¥23.63 trillion as of Sept. 30, 2025, up from ¥22.96 trillion as of Sept. 30, 2025. Toyota's debt-to-capitalization stands at 38% versus the industry’s 29%.
Stocks to Consider
Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 8 cents and 20 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 12 cents and 22 cents, respectively, in the past 30 days.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
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 $971 billion by 2028.
See This Stock Now for Free >>
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OPENLANE, Inc. (KAR) : 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.

Here's Why You Should Retain Toyota Stock in Your Portfolio Now

Investors Liked Unity Software's Report

Key Points
Joby's relationship with Uber is a clear indication of the company's aim to offer transportation services itself.
Its vertically integrated manufacturing model implies that it may be slower in the certification race than its rivals; however, it appears set to win the FAA certification race.
The company's relationship with Toyota offers investors reasons for confidence regarding its manufacturing plans.
Joby Aviation (NYSE: JOBY) is the standout pick among electric vertical take-off and landing (eVTOL) aircraft makers. This is so because compared to peers like Archer Aviation (NYSE: ACHR), it offers potentially more reward, and arguably, less risk. Here's why.
Joby Aviation's business model
Starting with the potential reward side of matters, it's crucial to understand Joby Aviation's business model. The starting point is a clear statement in its SEC filings: "We do not currently intend to sell our aircraft to independent third parties or individual customers as a primary business model."
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While management's position on such sales has somewhat moderated -- it recently announced it was exploring the sale of 200 eVTOLs to Saudi Arabia for $1 billion -- Joby's original guiding purpose remains intact.
Joby plans to operate under a vertically integrated business model whereby it will "manufacture, own and operate our aircraft ourselves," offering transportation to customers, including government agencies, and an "app-based aerial ridesharing service" to individuals.
As such, Joby isn't a company developing eVTOLs for sale: It's building aircraft that it will use to provide transportation services itself. That's a model with significantly more potential upside than a company could reap by merely selling eVTOLs, thanks to the recurring revenues of the service side of the business.
Indeed, this business model is exactly why Joby has a long-term partnership with Uber Technologies (NYSE: UBER) in place. Joby acquired Elevate (Uber's planning unit for a future eVTOL network) in 2020 and received a $75 million investment from Uber. In addition, Joby recently acquired Blade's passenger business (Uber's air mobility service, which includes helicopters). Blade will now be integrated into the Uber app in preparation for the eventual availability of eVTOL travel.
A vertically integrated business model
That said, Joby's "vertically integrated" approach involves more than just offering transportation services. It's also part and parcel of its manufacturing strategy.
Whereas rivals such as Archer Aviation or U.K.-based Vertical Aerospace are relying on heavyweight partners to develop key components for their aircraft, Joby operates its own powertrain and electronics manufacturing facility in California. Contrast that with Archer, which buys actuators and thermal management technology from Honeywell, and has a contract manufacturing relationship with Stellantis. Vertical Aerospace has many partners in its asset-light model -- among them, Honeywell (aircraft management and flight controls), GKN Aerospace (aerostructures), and Leonardo (fuselage).
That's not to say Joby is going it completely alone, because it's not. It has a deep partnership with one of the world's manufacturing heavyweights, Toyota. The Japanese automaker has committed to investing $894 million in Joby, and its engineers are collaborating with Joby's engineers to develop solutions through a manufacturing alliance. Toyota supplies Joby with powertrain and actuation parts.
Joby Aviation is arguably less risky.
For Archer and Vertical Aerospace, one of the supposed benefits of extensively tapping experienced partners for manufacturing is that it de-risks their technological development and certification process as compared to Joby's largely in-house approach.
But here's the thing.
Joby Aviation is ahead of Archer in the certification process. In Joby's recently released third-quarter report and shareholder letter, it outlined that it was 77% complete (on the Joby side) on stage four (out of five) in the certification process and 55% complete on the Federal Aviation Administration (FAA) side. CEO JoeBen Bevirt said the company expects to begin type inspection authorization (TIA) "certification flights with FAA pilots early next year."
Meanwhile, Archer is widely reported to be behind Joby in the FAA certification process. As Archer CFO Tom Muniz said on his company's Q3earnings call its modular approach to certification means "the TIA process, at least for us, will be broken into many phases on the order of, say, 10 different TIAs, each one targeting compliance for a very specific system or aspect of the aircraft."
A stock to buy
The combination of greater upside potential and relatively less risk (at least in terms of Joby being relatively closer to getting FAA certification for its aircraft) makes Joby an outstanding stock to buy, provided you want to invest in the eVTOL theme. The stock is not without risk, though, as there are no guarantees that this novel technology will pan out, or that the business model will. Still, the future looks bright for Joby and its vertically integrated operation.
Should you invest $1,000 in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $604,044!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,220,149!*
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*Stock Advisor returns as of November 10, 2025
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Honeywell International and Uber Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This California-Based Company Could Be a High-Potential eVTOL Play Right Now

Key Points
Ferrari breaks the auto valuation model.
It has earned its premium.
But there are risks to consider, too.
Ferrari (NYSE: RACE) is one of those companies investors can't easily classify. It's technically a carmaker, but its financials look more like a luxury house. And its stock price? Well, that's where the debate begins.
At around 41 times earnings, Ferrari trades at a premium higher than almost every automaker in the world. To many, that looks excessive. But dig deeper, and the premium starts to make sense. Ferrari's profitability, scarcity-driven business model, and brand resilience make it a rare breed -- one that could justify the price tag.
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So, is Ferrari stock really expensive? Or is it valued like the luxury compounder it's become?
Why the market thinks Ferrari is expensive
By traditional valuation standards, Ferrari's stock is rich. Most carmakers trade at single-digit P/E multiples -- General Motors, for example, sits around 6 times earnings. Even a luxury-leaning automaker like Mercedes-Benz hovers below 10.
Ferrari's P/E ratio of 41, EV/EBITDA multiple near 29, and price-to-sales ratio above 11 would seem absurd for a capital-intensive manufacturer. But that comparison misses the bigger picture: Ferrari's economics don't resemble the auto industry at all.
This is a company with an adjusted EBITDA margin of 38.3%, an operating margin of 28.3%, and a gross margin close to 50% in 2024. Those figures sit squarely between LVMH and Hermès -- not Ford Motor Company and Toyota.
If you value Ferrari as a luxury brand that sells emotion, heritage, and access, the multiple suddenly looks less extreme.
Why Ferrari might deserve its premium
Ferrari's customers don't buy cars for necessity. That emotional appeal insulates demand from economic slowdowns. Even during weaker macro periods, Ferrari's order book remains full.
Moreover, the brand monetizes far beyond vehicles. About 15% of revenue now comes from sponsorships, licensing, financial services, and after-sales. These recurring income streams strengthen predictability and cash-flow stability -- qualities that command premium multiples.
The brand power is clear when we look at its financials. Ferrari's return on invested capital (ROIC) stands near 24%, roughly double that of its luxury peer LVMH. Between 2015 and 2024, free cash flow grew by 139%, even while the company invested heavily in research and development and a new EV facility in Maranello.
Ferrari's model allows it to reinvest for the future and return capital to shareholders -- all without chasing scale. It could do that because it's a business built on scarcity and pricing power. It doesn't compete on volume -- it competes on restraint. By producing fewer cars than demand, it maintains multiyear waiting lists and rising resale values. That scarcity keeps pricing power intact.
But investors should also consider the bear case
Even so, Ferrari's current valuation leaves little room for error. At 42 times earnings, perfection is already priced in.
There are several potential risks that investors should keep in mind when buying the stock, which include:
Execution risk in electrification: Ferrari's first fully electric model arrives in 2026. If customers perceive it as less "Ferrari," the brand's emotional moat could weaken.
Luxury market cooling: While ultra-wealthy demand has proven resilient, global slowdowns or geopolitical shocks could dent sentiment.
Premium fatigue: If investors rotate away from luxury assets or demand higher risk premiums, Ferrari's multiple could compress even without a business slowdown.
These aren't existential risks, but they underscore how finely tuned Ferrari's premium is to flawless execution.
So, is Ferrari's stock expensive?
Yes -- by conventional metrics. But Ferrari isn't a conventional company. Its margins, cash-flow stability, and brand durability put it in a category of its own.
Investors aren't just paying for today's earnings. They're paying for a business that can continue compounding profitably for years, if not decades, while remaining almost immune to competitive price wars.
If Ferrari continues to blend scarcity with innovation -- protecting its brand while modernizing its lineup -- its valuation could remain elevated for years without being "expensive" in hindsight.
For long-term investors, Ferrari's current price isn't cheap -- but quality rarely is.
Should you invest $1,000 in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $595,194!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,153,334!*
Now, it’s worth noting Stock Advisor’s total average return is 1,036% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of November 3, 2025
Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool recommends Ferrari and General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ferrari Stock Looks Expensive -- or Does It?

Key Points
Toyota Motor delivers a 3.2% yield and adjusts its dividend based on actual cash generation rather than chasing arbitrary payout streaks.
If you insist on a long streak, Texas Instruments has increased its dividend annually since 2004.
Both companies offer dividend yields above 3% backed by strong fundamentals and decades of operational excellence in their respective industries.
Some investing decisions are tough to make. Others are practically no-brainers that don't require hours of analysis.
I see two top-notch dividend stocks in this market that fall into that category. Here's why dividend investors should consider grabbing some Toyota Motor (NYSE: TM) and Texas Instruments (NASDAQ: TXN) shares right now. They're even simpler picks since I'm analyzing these stocks -- so you don't have to.
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Toyota Motor: 3.2% yield
I know, I know -- these aren't exactly new names. Toyota was founded way back in 1937, has decades of car-building experience, and often dominates global vehicle sales. The company delivered 1.60 million cars to U.S. customers in the first three quarters of 2025, just ahead of Ford (NYSE: F) at 1.57 million and way in front of Tesla's (NASDAQ: TSLA) 404,500 vehicles.
Toyota may seem like a strange dividend pick. Japanese companies generally aren't as committed to consistent dividend growth as American dividend payers. As such, Toyota adjusts its payouts to fit its cash-generating results rather than building long-term streaks of annual payout increases. For example, Toyota reduced its payout in response to the inflation-based financial crisis of 2022 and the financial turmoil in 2008.
That being said, Toyota is enjoying strong sales and steady cash flows right now, and its dividend payouts have never been higher. You can't "lock in" the rich dividend yield in Toyota, the way you can with streak-driven American dividend stocks, but this payout policy is as solid as they come.
The mass-market Toyota and luxury-oriented Lexus brands are masters of their domains. Sure, the world is turning to electric vehicles like never before, but you don't have to settle for Prius-style hybrids at the Toyota dealership anymore. The Toyota bZ4X offers a lower-cost alternative to the Tesla Model Y. The Lexus RZ can match spec sheets with higher-end electrics like fully loaded Tesla Model Y or a Polestar 4.
So Toyota is prepared for sharp turns in the road ahead. I trust this dividend to stay strong for decades to come, falling back when Toyota needs to conserve cash for a while. This company may never be a dividend king with at least 50 straight years of annual payout boosts, but that's OK. Honestly, I'd rather see companies paying the dividends they can afford instead of focusing on a numerical streak.
Texas Instruments: 3.4% yield
And you know this name, too. Texas Instruments has been around since 1930, playing a key role in the history of semiconductors. You probably used a TI calculator in high school, no matter which decade that was.
TI isn't quite a dividend king, either, but it has pursued those long-term streaks since 2004. The company looks likely to continue its payout-boosting ways for the foreseeable future.
I know I just called Toyota's dividend attitude better in some ways, but Texas Instruments does business in a different culture and is broadly expected to keep the increases coming. The company does a great job of living up to these expectations.
So it's a more straightforward dividend investment than Toyota's sophisticated approach. Texas Instruments tries very hard to boost its payouts every year, through thick or thin. Free cash flows have been running low since 2022, but are trending strongly higher in recent quarters, and management actively works to produce stronger cash flows per share over time. Industrial chip sales are surging along with robust sales of analog and embedded processors. Many of TI's target industries have been working through bloated chip inventories in recent years, but that trend is ending.
The stock market hasn't been kind to Texas Instruments shares in 2025, and the stock price has fallen 21.2% over the last 52 weeks. With reinvested dividends, you're looking at a total return of negative 18.6% instead. Those payouts make a real difference, especially in the long run. This looks like a great time to bet on a Wall Street turnaround for this semiconductor veteran -- actually locking in an abnormally high dividend yield for the long haul.
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Texas Instruments. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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