Honda Stock Performance

HMC
 Stock
  

USD 21.59  0.79  3.53%   

The company retains a Market Volatility (i.e., Beta) of 1.0115, which attests to a somewhat significant risk relative to the market. Let's try to break down what Honda's beta means in this case. Honda returns are very sensitive to returns on the market. As the market goes up or down, Honda is expected to follow. Even though it is essential to pay attention to Honda Motor current price history, it is always good to be careful when utilizing equity current price movements. Our philosophy towards determining any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Honda Motor exposes twenty-one different technical indicators, which can help you to evaluate its performance. Honda Motor has an expected return of -0.055%. Please be advised to check out Honda maximum drawdown, and the relationship between the information ratio and downside variance to decide if Honda Motor performance from the past will be repeated at some point in the near future.
  
Honda Performance
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Over the last 90 days Honda Motor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Honda is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors. ...more

Honda Price Channel

Quick Ratio1.08
Fifty Two Week Low22.08
Target High Price31.51
Fifty Two Week High32.15
Payout Ratio13.18%
Trailing Annual Dividend Yield732.66%
Target Low Price28.88

Honda Relative Risk vs. Return Landscape

If you would invest  2,340  in Honda Motor on July 6, 2022 and sell it today you would lose (102.00)  from holding Honda Motor or give up 4.36% of portfolio value over 90 days. Honda Motor is generating negative expected returns assuming volatility of 1.7968% on return distribution over 90 days investment horizon. In other words, 15% of stocks are less volatile than Honda, and above 99% of all equities are expected to generate higher returns over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Considering the 90-day investment horizon Honda is expected to generate 1.49 times more return on investment than the market. However, the company is 1.49 times more volatile than its market benchmark. It trades about -0.03 of its potential returns per unit of risk. The DOW is currently generating roughly -0.06 per unit of risk.

Honda Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Honda's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Honda Motor, and traders can use it to determine the average amount a Honda's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0306

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Estimated Market Risk
 1.8
  actual daily
 
 15 %
of total potential
 
1515
Expected Return
 -0.05
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Risk-Adjusted Return
 -0.03
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Based on monthly moving average Honda is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Honda by adding it to a well-diversified portfolio.

About Honda Performance

To evaluate Honda Motor Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Honda generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Honda Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Honda Motor market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Honda's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products in Japan, North America, Europe, Asia, and internationally. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan. Honda operates under Auto Manufacturers classification in the United States and is traded on New York Stock Exchange. It employs 204035 people.

Things to note about Honda Motor

Checking the ongoing alerts about Honda for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Honda Motor help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Honda Alerts

Equity Alerts and Improvement Suggestions

Honda Motor generated a negative expected return over the last 90 days
Honda Motor has high likelihood to experience some financial distress in the next 2 years
Latest headline from www.reuters.com: Japans Stanley Electric signs capital alliance agreement with Honda - Reuters.com
Please check Risk vs Return Analysis. You can also try Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

Complementary Tools for analysis

When running Honda Motor price analysis, check to measure Honda's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honda is operating at the current time. Most of Honda's value examination focuses on studying past and present price action to predict the probability of Honda's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Honda's price. Additionally, you may evaluate how the addition of Honda to your portfolios can decrease your overall portfolio volatility.
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Is Honda's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Honda. If investors know Honda will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Honda listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Honda Motor is measured differently than its book value, which is the value of Honda that is recorded on the company's balance sheet. Investors also form their own opinion of Honda's value that differs from its market value or its book value, called intrinsic value, which is Honda's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Honda's market value can be influenced by many factors that don't directly affect Honda's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Honda's value and its price as these two are different measures arrived at by different means. Investors typically determine Honda value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honda's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.