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Tesla (TSLA) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Tesla (TSLA) closed at $1,389.86, marking a +1.33% move from the previous day. This move outpaced the S&P 500's daily loss of 1.08%. Meanwhile, the Dow lost 1.51%, and the Nasdaq, a tech-heavy index, lost 0.86%.

Coming into today, shares of the electric car maker had gained 44.39% in the past month. In that same time, the Auto-Tires-Trucks sector gained 9.37%, while the S&P 500 lost 0.3%.

Wall Street will be looking for positivity from TSLA as it approaches its next earnings report date. In that report, analysts expect TSLA to post earnings of -$0.80 per share. This would mark year-over-year growth of 28.57%. Meanwhile, our latest consensus estimate is calling for revenue of $4.67 billion, down 26.38% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.60 per share and revenue of $26.61 billion, which would represent changes of +3438.46% and +8.26%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TSLA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 4099.99% lower. TSLA is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, TSLA is currently trading at a Forward P/E ratio of 298.41. This represents a premium compared to its industry's average Forward P/E of 27.49.

We can also see that TSLA currently has a PEG ratio of 7.45. 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. TSLA's industry had an average PEG ratio of 3.53 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% 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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