top partner

for CFD

What happened

Shares of Toyota Motor (NYSE: TM) were gaining today as investors continued to bet that the Japanese auto manufacturer would benefit from the ongoing strike by the United Auto Workers (UAW).

Though there was no company-specific news about Toyota, that was enough to boost the stock today, sending it up 3% as of 11:32 a.m. ET on Tuesday.

So what

Toyota shares are continuing a recent rally as manufacturers that don’t depend on union workers, like Toyota, are expected to benefit from the UAW strike against Ford, General Motors, and Stellantis, the owner of Chrysler.

A Canadian autoworkers union, Unifor, also joined the strike last night as its contract with Ford expired.

Though talks between the union and the automakers continued yesterday, the UAW is threatening to expand the strikes to new plants by the end of the week if the companies don’t sweeten their proposals.

Currently, about 13,000 UAW members are on strike at three auto plants, but an expanding job action would seem to benefit manufacturers like Toyota even more so.

Now what

Toyota shares are up about 20% over the last month as the company reported August North America sales were up 14.8% to 194,708 vehicles, a sign that it’s gaining market share.

The company also teamed up with FuelCell Energy earlier this month, completing the first so-called tri-gen production system, which produces renewable electricity, renewable hydrogen, and water from directed biogas, showing the company is making moves in renewable energy.

Toyota stock looks well priced at a price-to-earnings ratio of just 12, and even a resolution to the strike would seem to be good news for the company because its rival automakers will have to spend more money on labor, meaning they’ll have to raise vehicle prices or eat the costs and spend less elsewhere.

Either way, Toyota looks like a winner from the strike.

10 stocks we like better than Toyota Motor
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Toyota Motor wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of September 18, 2023

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends General Motors and Stellantis and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.

Read the full story: Read More“>

Blog powered by G6

Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.

For any inquiries, please contact [email protected]