We recently published a list of 10 Best Very Cheap Stocks To Buy Right Now. In this article, we are going to take a look at where Toyota Motor Corporation (NYSE:TM) stands against other best very cheap stocks to buy right now.
The stock market had a mixed start to 2025 as the Chinese Deepseek AI model has put the U.S. AI giants on the back foot. However, the tech-heavy NASDAQ 100 index made a recovery after taking a hit and has surged over 5% year-to-date. In addition, the S&P 500 index has gained just over 4% so far in 2025.
READ ALSO: 10 Best Cheap Technology Stocks To Buy According to Analysts
Goldman Sachs Research’s chief US equity strategist, David Kostin, expects the US tariffs to negatively impact the S&P 500 EPS in 2025. Kostin cited that every five-percentage-point increase in the US tariff rate will reduce S&P 500 EPS by roughly 1-2%.
If the U.S. administration continues with the proposed tariff rates, a 25% tariff on imported goods from Mexico and Canada and an additional 10% tariff on imports from China would reduce S&P 500 EPS forecasts by approximately 2-3%, as per Goldman’s Research.
With the potential market risks and tariff threat from the Trump administration, cheap stocks with strong fundamentals can be a good option for investment.
At first glance, the market may seem overvalued, with the S&P 500 trading close to all-time highs, driven by tech giants and leading consumer stocks. However, some stocks have missed the broader market rally amid temporary challenges. These stocks have attractive forward P/E ratios and proven growth records.
Our Methodology
We used the Finviz screener to compile a list of 30 cheap stocks with a forward P/E ratio of under 15. We shortlisted the 10 best very cheap stocks to buy now based on the highest potential upside according to average analyst estimate, as of February 17. The very cheap stocks are ranked in ascending order of the average analyst upside.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Workers assembling a car in a modern manufacturing plant, emphasizing the company’s sense of progress.
Toyota Motor Corporation (NYSE:TM)
P/E Ratio: 9.25
Average Analysts Upside: 20.79%
Toyota Motor Corporation (NYSE:TM) is the world’s largest auto manufacturer in terms of sales volume, design, production, assembly, and distribution of cars, minivans, commercial vehicles, and associated parts and accessories worldwide. The company is also investing in autonomous driving, AI, and mobility services.
Despite reporting a 4% decline in global vehicle unit sales for the first nine months of FY 2025, the company improved its net profit to 2.19 trillion yen in Q3 FY2025, up by 62% year-over-year. The net profit for Q3 exceeded market expectations of 1.19 trillion yen. As the company’s profit improved significantly in Q3, Toyota (NYSE:TM) has revised its full-year revenue guidance, up from 46 trillion yen to 47 trillion yen. The company now expects an improved operating profit of 4.7 trillion yen, upgraded from a previous forecast of 4.3 trillion yen. In addition to that, the automaker has successfully implemented its cost-saving initiatives and improvement in product competitiveness which are supporting earnings.
On February 6, Macquarie analyst James Hong upgraded the rating on TM shares from Neutral to Outperform. The analyst expects Toyota (NYSE:TM) to stabilize and improve its production, driven by favourable foreign exchange trends and strong hybrid electric vehicle (HEV) sales. “Less exciting earnings, but better quarters ahead,” added Hong.
Overall, TM ranks 5th on our list of best very cheap stocks to buy right now. While we acknowledge the potential of TM to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
