Stock of the Day

Honda Motor (HMC)

$28.20

+$0.23 (+0.8%)

Market Cap: $0.00M

About Honda Motor

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 Bull Case

Here are some ways that investors could benefit from investing in Honda Motor Co., Ltd.:

• Honda Motor Co., Ltd. recently updated its FY 2025 earnings guidance, projecting earnings per share of 1.360, which indicates a stable outlook for profitability.
• The company reported a strong quarterly earnings result, with an EPS of $1.57, surpassing analysts' expectations, which reflects effective management and operational efficiency.
• With a current stock price of $27.76, Honda Motor Co., Ltd. is trading significantly below its 1-year high of $37.90, suggesting potential for price appreciation as the market stabilizes.
• The company has a solid market capitalization of $47.49 billion, indicating a strong position in the automotive industry, which can attract institutional investors.
• Honda Motor Co., Ltd. operates through diverse segments, including motorcycles, automobiles, and financial services, which helps mitigate risks associated with reliance on a single market.

Honda Motor Bear Case

Investors should be bearish about investing in Honda Motor Co., Ltd. for these reasons:

• The stock has recently experienced a decline of 8.4%, which may indicate underlying issues or market sentiment that could affect future performance.
• Honda Motor Co., Ltd. has a P/E ratio of 6.46, which, while low, may suggest that the market has concerns about the company's growth prospects compared to its peers.
• The company has a beta of 0.67, indicating lower volatility compared to the market, which may limit potential gains during bullish market conditions.
• Analysts have downgraded Honda Motor Co., Ltd. from a "strong-buy" to a "buy" rating, signaling a shift in market confidence that could impact investor sentiment.
• The company’s revenue guidance of $141.1 billion, while stable, may not meet the aggressive growth expectations of some investors, leading to potential disappointment.

Recent News

• Honda's auto financing arm fined $12.8M over alleged credit reporting lapses (msn.com)
• US regulator orders Honda unit to pay $12.8 million for harming drivers' credit reports (reuters.com)
• Is Honda Motor (HMC) Among the Cheapest Stocks with Biggest Upside Potential? (msn.com)
• Sony-Honda joint project launches a pricey electric car with futuristic tech (marketwatch.com)
• SA Asks: Is Honda too late to the EV party? (msn.com)