Toyota Motor (TM 0.58%) 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 (SIRI 2.75%) 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.
