Tesla (TSLA) closed at $346.40 in the latest trading session, marking a -1.27% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.45%.
Shares of the electric car maker witnessed a gain of 6.43% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 13.84%, and outperforming the S&P 500's gain of 3.07%.
The upcoming earnings release of Tesla will be of great interest to investors. The company is forecasted to report an EPS of $0.48, showcasing a 33.33% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $25.12 billion, indicating a 0.23% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.66 per share and a revenue of $92.65 billion, indicating changes of -31.4% and -5.16%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Tesla. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.35% lower. At present, Tesla boasts a Zacks Rank of #4 (Sell).
With respect to valuation, Tesla is currently being traded at a Forward P/E ratio of 211.64. This denotes a premium relative to the industry average Forward P/E of 14.57.
Also, we should mention that TSLA has a PEG ratio of 8.84. 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 was holding an average PEG ratio of 2.49 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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