Tesla (TSLA) closed at $435.80 in the latest trading session, marking a +1.02% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.44%.
The stock of electric car maker has fallen by 4.44% in the past month, lagging the Auto-Tires-Trucks sector's loss of 2.03% and the S&P 500's gain of 0.86%.
Analysts and investors alike will be keeping a close eye on the performance of Tesla in its upcoming earnings disclosure. The company's earnings report is set to go public on January 28, 2026. The company is predicted to post an EPS of $0.46, indicating a 36.99% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $24.8 billion, indicating a 3.53% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.62 per share and a revenue of $94.88 billion, signifying shifts of -33.06% and 0%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Tesla. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.07% lower. Tesla is currently a Zacks Rank #3 (Hold).
In terms of valuation, Tesla is currently trading at a Forward P/E ratio of 187.3. This represents a premium compared to its industry average Forward P/E of 14.07.
It is also worth noting that TSLA currently has a PEG ratio of 5.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 31% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Tesla, Inc. (TSLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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