Tesla (TSLA) closed the most recent trading day at $356.90, moving -1.65% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.56%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.51%.
The electric car maker's shares have seen an increase of 24.26% over the last month, surpassing the Auto-Tires-Trucks sector's gain of 16.76% and the S&P 500's gain of 7.37%.
The investment community will be closely monitoring the performance of Tesla in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.43, marking a 17.31% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $23.63 billion, indicating a 7.34% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.90 per share and a revenue of $97.06 billion, representing changes of -21.49% and -0.65%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.61% downward. Tesla is currently sporting a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Tesla is currently being traded at a Forward P/E ratio of 190.76. This expresses a premium compared to the average Forward P/E of 10.66 of its industry.
One should further note that TSLA currently holds a PEG ratio of 10.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Automotive - Domestic industry held an average PEG ratio of 1.11.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 218, putting it in the bottom 12% 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.
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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