Tesla (TSLA) closed the most recent trading day at $513.49, moving -0.97% from the previous trading session. This change lagged the S&P 500's 0.84% gain on the day. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 1.06%.
Prior to today's trading, shares of the electric car maker had gained 31.88% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 2.74% and the S&P 500's gain of 3.95% in that time.
Wall Street will be looking for positivity from TSLA as it approaches its next earnings report date. The company is expected to report EPS of $1.59, down 17.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.99 billion, down 3.2% from the year-ago period.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.9% higher. TSLA is currently a Zacks Rank #2 (Buy).
Digging into valuation, TSLA currently has a Forward P/E ratio of 82.6. This valuation marks a premium compared to its industry's average Forward P/E of 12.41.
We can also see that TSLA currently has a PEG ratio of 1.78. 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 1.34 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 94, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow TSLA in the coming trading sessions, be sure to utilize Zacks.com.
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