Why Toyota Motor Stock Just Popped

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Toyota Motor (NYSE: TM) stock revved 3.4% higher through 10:35 a.m. ET Tuesday after announcing a new marketing campaign to attract Millennial and Gen Z buyers to its cars -- specifically, the Corolla Hybrid and Corolla Hybrid Nightshade edition. The campaign centers around a 4.5-minute "short film" titled "Getaway Driver" starring internet personality "King Bach," which will be released at 5 p.m. ET tonight on Toyota's YouTube channel. Why all the hype around a commercial? Toyota teased the 4.5-minute film this morning with a 30-second commercial showing Bach jumping in a Corolla and racing away from a prototypical "dude with a chainsaw" who pops out of a cabin in the woods. While driving away, the actor touts the Corolla hybrid's acceleration, combined with 44 miles-per-gallon fuel efficiency and "good air conditioning, too." This is basically just a car commercial with a longer narrative than usual. Sirius XM (NASDAQ: SIRI) also acts as a co-sponsor (not that Toyota needs the financial help). Still, the commercial makes sense. It's targeting younger car buyers and introducing them to its entry-level vehicle along the Corolla-Camry-Crown continuum. And it's got the added twist of hyping a hybrid, which should appeal to younger car buyers' environmental leanings. Is Toyota stock a buy? Will it be enough to move the needle for Toyota regarding sales growth? Only time will tell. But whether this particular commercial "works" or not -- whether it convinces young car buyers to buy more Toyota cars -- Toyota stock already looks attractive. Toyota's stock is priced at just 8.5 times trailing earnings, and analysts have the company pegged for a 15.9% long-term growth rate, valuing the stock at a cheap 0.5 price/earnings-to-growth ratio (PEG). The stock also offers dividend investors an attractive 2.4% dividend yield. All things considered, I consider Toyota stock a buy. Should you invest $1,000 in Toyota Motor right now? Before you buy stock in Toyota Motor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Toyota Motor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $723,729!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Story continues See the 10 stocks » *Stock Advisor returns as of June 24, 2024 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Toyota Motor Stock Just Popped was originally published by The Motley Fool