Tesla (TSLA) ended the recent trading session at $319.11, demonstrating a -2.24% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.24%.
Shares of the electric car maker witnessed a loss of 6.11% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 5.67%, and the S&P 500's gain of 6.6%.
The investment community will be paying close attention to the earnings performance of Tesla in its upcoming release. The company is forecasted to report an EPS of $0.43, showcasing a 17.31% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $23.5 billion, showing a 7.84% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.88 per share and revenue of $97.06 billion, indicating changes of -22.31% and -0.65%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tesla. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.31% higher. At present, Tesla boasts a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Tesla is holding a Forward P/E ratio of 173.21. This valuation marks a premium compared to its industry average Forward P/E of 10.99.
It's also important to note that TSLA currently trades at a PEG ratio of 9.11. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.14 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 217, positioning it in the bottom 12% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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