Toyota Motor Corporation (NYSE:TM) is one of the Most Undervalued Foreign Stocks to Buy Now. On May 14, Freedom Broker upgraded Toyota Motor Corporation (NYSE:TM) from Hold to Buy and raised the price target from $221 to $230. The analyst noted that the company appears to be adopting the new operating environment and expects the company to show signs of recovery in its financial performance.
Recently, on May 8, the company posted its fiscal Q4 2026 earnings. During the quarter, the company reported roughly 50% decline in quarterly earnings and expects full-year profits to decline by about a fifth. The report highlighted that most of this damage is due to higher material costs, followed by delivery delays and weaker sales volumes. Moreover, the increase in prices is also impacting everything from fuel to transportation and paints used at the assembly plants.
Despite these pressures, Toyota sees a bright spot in hybrid vehicles, with sales expected to surpass 5 million units for the first time. On the same day, Reuters reported that Toyota has warned that the ongoing Iran war is expected to cost around $4.3 billion in the current financial year. According to Reuters this is one of the starkest warnings issued by any global company related to the US-Iran conflict.
Toyota Motor Corporation (NYSE:TM) is a global leader in the automotive industry, designing, manufacturing, and selling a wide range of passenger cars, trucks, and commercial vehicles under the Toyota, Lexus, and Daihatsu brands.
While we acknowledge the potential of TM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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