NYSE:HMC

Honda Motor Ltd. (HMC)

26.63
-1.31 (4.67%)
as of Jun 5, 2026, 7:37:06 pm Market Open.
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DON'T BUY

It has not been very good. Investors thought they would benefit from the depreciating Yen and higher exports. If you bought it in Japan you would actually be down.

DON'T BUY

ADRs. They are US dollar denominated. You either have a currency tailwind or headwind. Last year it was a tailwind. It also harms earnings. If the earnings are off shore and US dollar is strong, exports are hampered. It was an off quarter for Honda. Toyota has done a better job in the last year at getting things sold. He prefers the ones they own – F-N and TTM-N.

BUY

He is somewhat bullish on the sector from an auto demand standpoint. The age of cars in Europe has gotten older. He is looking at HMC-N and TM-N. They are both forward thinking, well positioned companies.

DON'T BUY

Your views on Toyota (TM-N) and Honda (HMC-N) with consideration of currency risk? Japanese automakers have done a good job of managing currency risks by moving production to where their customers are, so currency risk is less of an issue. The whole auto sector is hurting with Europe being down. This is an economic sector which is global. US automakers have gained back a lot of ground. This is neither expensive nor cheap. Fairly valued.

COMMENT
Car industry has recovered a little bit off the lows, but certainly isn't back to trend growth and doesn't think it will be for quite some time. Honda is relatively well positioned relative to Toyota (TM-N) and some of the North American manufacturers. Likes their motorcycle division and its margins. Has a little bit better product mix than Toyota. If your portfolio is not heavily weighted toward cyclicals and things that require robust economic growth, then you could add this and be comfortable.
BUY ON WEAKNESS
This and Toyota (TM-N) are very strong companies and will be strong survivors going forward. Honda has a little bit more exposure to the US market than Toyota but a little less exposure to Japan. Both companies are very well positioned into the emerging markets. By them on a pullback.
TOP PICK
2.5% dividend. There will have to be a response in the automobile industry to high energy prices. This company is the furthest along the line in terms of hybrid and miles per gallon. Have a leg up on everybody else.
DON'T BUY
Would pick Toyota. Staying away from automotive stocks. Facing demand and pricing issue. At this time not the right time, buy if economy strengthens.
BUY
Both Honda (HMC-N) and Toyota (TM-N) are two of the best automotive stocks in the world. They are both pretty close to their all-time highs. You could make a case for either of these companies. He has no automotive companies.
BUY
Toyota (TM-N) and Honda (HMC-N) are 2 of the premier companies globally along with BMW and Porsche. Expectation is for slightly slower growth. Very simple format of making good-quality cars with 2 brand names that they build upon slowly.
WEAK BUY
Have a lot less product than Toyota. Auto companies are facing difficulty right now, so the pricing environment won’t be very good, even for the successful ones.
BUY
A very well run company. If you are going to be in the car business, you want to be either in Honda or Toyota, all or in Europe, BMW or Porsche. The yen exchange rate can affect them a great deal. A great story for a long-term view.
HOLD
Honda (HMC-N) and Toyota (TM-N) are the 2 premier companies in the auto sector. Solid growth record over the last 10 years. Beat the most recent quarter. Impacted by the concerns of the consumer in general. As long as it stays above $30, you're OK.
DON'T BUY
Prefers Toyota (TM-N) at this time.
BUY
Honda (HMC-N) and Toyota (TM-N) have been killing the North American auto manufacturers. Doesn't see any slowdown of this. Good core holding.
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