In the latest trading session, Tesla (TSLA) closed at $387.79, marking a +1.95% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.3%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.37%.
Coming into today, shares of the electric car maker had lost 11.67% in the past month. In that same time, the Auto-Tires-Trucks sector lost 4.17%, while the S&P 500 lost 5.02%.
TSLA will be looking to display strength as it nears its next earnings release. On that day, TSLA is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 24.32%. Meanwhile, our latest consensus estimate is calling for revenue of $7.84 billion, up 24.32% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.92 per share and revenue of $29.53 billion. These totals would mark changes of +6300% and +20.17%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for TSLA. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 42.03% higher. TSLA currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that TSLA has a Forward P/E ratio of 197.9 right now. Its industry sports an average Forward P/E of 26.42, so we one might conclude that TSLA is trading at a premium comparatively.
We can also see that TSLA currently has a PEG ratio of 5.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Automotive – Domestic industry currently had an average PEG ratio of 4 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 51, putting it in the top 21% 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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