In the latest trading session, Tesla (TSLA) closed at $863.93, marking a -0.75% move from the previous day. This change was narrower than the S&P 500’s 1.55% loss on the day. At the same time, the Dow lost 1.76%, and the tech-heavy Nasdaq lost 0.21%.
Coming into today, shares of the electric car maker had lost 7.08% in the past month. In that same time, the Auto-Tires-Trucks sector lost 5.94%, while the S&P 500 lost 2.89%.
Tesla will be looking to display strength as it nears its next earnings release. In that report, analysts expect Tesla to post earnings of $2.01 per share. This would mark year-over-year growth of 116.13%. Meanwhile, our latest consensus estimate is calling for revenue of $16.44 billion, up 58.29% from the prior-year quarter.
TSLA’s full-year Zacks Consensus Estimates are calling for earnings of $9.54 per share and revenue of $81.48 billion. These results would represent year-over-year changes of +40.71% and +51.39%, respectively.
Any recent changes to analyst estimates for Tesla should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.74% higher. Tesla is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Tesla is holding a Forward P/E ratio of 91.2. This represents a premium compared to its industry’s average Forward P/E of 12.69.
Investors should also note that TSLA has a PEG ratio of 2.35 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. TSLA’s industry had an average PEG ratio of 0.94 as of yesterday’s close.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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