Profit from their embrace of electric vehicles

Article Excerpt

Toyota and Honda are both curtailing production due to a global shortage of chips that control a variety of vehicle functions, such as power steering and braking systems. However, the shortages are increasing the price of their new cars. Their investments in electric vehicles (EVs) also set them up for long-term gains. TOYOTA MOTOR CO. ADRs $182 is a buy. The stock (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.4 billion; Market cap: $254.8 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.toyota.com) gives you exposure to the world’s largest automaker. In its fiscal 2022 first quarter, ended June 30, 2021, Toyota’s sales rose 85.5% to 2.15 million vehicles from 1.16 million a year earlier, as demand recovered from last year’s COVID-19 shutdowns. Overall revenue in the quarter also jumped 72.5%, to $72.1 billion from $41.8 billion a year earlier. Earnings soared 467.0%, to $5.84 per ADR from $1.03 (each American Depositary Receipt…