Tesla (TSLA) closed at $396.73 in the latest trading session, marking a -2.17% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.33%. At the same time, the Dow lost 0.95%, and the tech-heavy Nasdaq lost 1.59%.
Shares of the electric car maker have appreciated by 2.1% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 0.66%, and the S&P 500's gain of 0.58%.
Investors will be eagerly watching for the performance of Tesla in its upcoming earnings disclosure. In that report, analysts expect Tesla to post earnings of $0.39 per share. This would mark year-over-year growth of 44.44%. Simultaneously, our latest consensus estimate expects the revenue to be $22.51 billion, showing a 16.43% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.08 per share and a revenue of $102.71 billion, indicating changes of +25.3% and +8.32%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Tesla. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Within the past 30 days, our consensus EPS projection has moved 5.93% lower. Tesla is currently a Zacks Rank #4 (Sell).
In the context of valuation, Tesla is at present trading with a Forward P/E ratio of 195.33. For comparison, its industry has an average Forward P/E of 15.6, which means Tesla is trading at a premium to the group.
We can also see that TSLA currently has a PEG ratio of 8.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.03 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Tesla, Inc. (TSLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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