In the latest close session, Tesla (TSLA) was up +1.1% at $316.97. The stock's performance was ahead of the S&P 500's daily gain of 0.14%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Prior to today's trading, shares of the electric car maker had lost 3.63% lagged the Auto-Tires-Trucks sector's loss of 1.73% and the S&P 500's gain of 3.97%.
The upcoming earnings release of Tesla will be of great interest to investors. The company's earnings report is expected on July 23, 2025. The company's upcoming EPS is projected at $0.4, signifying a 23.08% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.61 billion, down 11.35% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.8 per share and a revenue of $94.46 billion, demonstrating changes of -25.62% and -3.3%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.93% lower. Tesla presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Tesla is at present trading with a Forward P/E ratio of 174.17. This indicates a premium in contrast to its industry's Forward P/E of 12.01.
It's also important to note that TSLA currently trades at a PEG ratio of 6.97. 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 had an average PEG ratio of 1.23 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Tesla, Inc. (TSLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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