In the latest trading session, Tesla (TSLA) closed at $654.87, marking a +0.26% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.06%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.76%.
Coming into today, shares of the electric car maker had lost 17.05% in the past month. In that same time, the Auto-Tires-Trucks sector lost 6.89%, while the S&P 500 gained 0.17%.
TSLA will be looking to display strength as it nears its next earnings release. On that day, TSLA is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $9.49 billion, up 58.52% from the prior-year quarter.
TSLA’s full-year Zacks Consensus Estimates are calling for earnings of $4.07 per share and revenue of $47.11 billion. These results would represent year-over-year changes of +81.7% and +49.4%, respectively.
Investors should also note any recent changes to analyst estimates for TSLA. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.38% lower within the past month. TSLA currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that TSLA has a Forward P/E ratio of 160.51 right now. This represents a premium compared to its industry’s average Forward P/E of 16.69.
Also, we should mention that TSLA has a PEG ratio of 4.65. 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. The Automotive – Domestic was holding an average PEG ratio of 2.33 at yesterday’s closing price.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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