Who’s the biggest and baddest of the auto stocks? Here’s a hint, it comes from the same island as Godzilla.
Last week, Toyota Motors (TM) reported its final sales figures for 2013, and for the second-consecutive year the Japanese behemoth beat out other auto stocks and hoisted the trophy as the biggest kid on the auto block. Toyota said it sold 9.98 million vehicles last year, which is a record for the company. That figure also represents a 2.4% jump from the prior year.
Never a firm to shy away from tactics that will make it a winner, in 2013 TM stock moved aggressively to take advantage of “Abenomics,” the term used to describe Japan’s policy (named after Prime Minister Shinzo Abe) to deliberately debase the yen.
The yen’s weakness allowed Toyota to slash prices on their vehicles in the US without fear of material loss, and the lower U.S. dollar price allowed the company to sell more vehicles in a single year than ever before — and more than any competing auto stocks, last year.
The company said it expects sales to rise again in 2014 to more than 10 million. Will that make 2014 a three-peat for Toyota? Can Toyota stock rise another 25%-plus the way it did last year? If TM stock wants those results, it will have to stave off some serious competition from other auto stocks.
Here are a few other auto stocks intent on chasing Toyota down in 2014: