Toyota's (TM, $121.89) Latest Recall - 70,000 Vehicles in North America
Toyota is recalling around 70,000 Toyota and Lexus vehicles in North America, to replace air bag inflators that could have deteriorated.
The recalled car models include the 2003 to 2005 Corolla, the 2002 to 2005 Sequoia, the 2003 to 2005 Tundra and the 2002 to 2005 Lexus SC. About 65,000 of the recalled vehicles are in the U.S.
While Takata uses ammonium nitrate to create a small explosion and inflate the airbags, it can degenerate and burn too quickly – something that could eventually blow a metal canister apart. As part of the latest recall, Toyota wants to reportedly use inflators made by a different company with a safer chemical. Users will be notified of the recall and replacement in 2019.
This is not the first time that the Japanese automaker has had to recall vehicles. In November, it recalled more than one million vehicles globally, owing to faulty airbags. In October, Toyota announced the global recall of around 188,000 pickup trucks, sports utility vehicles and cars.
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for TM turns positive, indicating new upward trend
TM saw its Momentum Indicator move above the 0 level on September 10, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In 56 of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at 64%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +3.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where TM advanced for three days, in 172 of 310 cases, the price rose further within the following month. The odds of a continued upward trend are 55%.
The Aroon Indicator entered an Uptrend today. In 90 of 188 cases where TM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 48%.
Bearish Trend Analysis
The 10-day RSI Indicator for TM moved out of overbought territory on September 04, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In 15 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 48%.
The Moving Average Convergence Divergence Histogram (MACD) for TM turned negative on September 08, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 26 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 55%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 52%.
TM broke above its upper Bollinger Band on August 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 16 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.966) is normal, around the industry mean (8.860). P/E Ratio (8.664) is within average values for comparable stocks, (580.284). Projected Growth (PEG Ratio) (1.556) is also within normal values, averaging (3.047). Dividend Yield (0.030) settles around the average of (0.038) among similar stocks. P/S Ratio (0.752) is also within normal values, averaging (2.914).
The Tickeron PE Growth Rating for this company is 45 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 46 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. TM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 80 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
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General Information
a manufacturer of motor vehicles and parts
Industry MotorVehicles
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