Will Toyota Motor Continue Its Dominance?

With shares of Toyota Motor (NYSE:TM) trading around $103, is TM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for a Stock’s Movement

Toyota Motor is a Japan-based company that is invovled in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles and related parts primarily in Japan, North America, Europe, and Asia. With the recent overhaul and advancing technologies occuring in the automobile industry, Toyota Motor has led the pack. As the auto industry continues to advance, Toyota Motor is well-positioned and has met consumer demand time and time again.

T = Technicals on the Stock Chart are Strong

Toyota Motor is one of the better performing automobile stocks. It is currently in an uptrend and looks to be headed towards stock prices not seen since 2007. Key simple moving averages can provide insight into the trend and strength of the trend. What are the key moving averages? The 50-day, 100-day, and 200-day simple moving averages. Toyota Motor is currently trading above all of its rising key simple moving averages. This type of price action signals a strong uptrend in the stock price.