Tesla (TSLA) ended the recent trading session at $340.48, demonstrating a -2.35% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 1.43%.
Prior to today's trading, shares of the electric car maker had gained 2.75% outpaced the Auto-Tires-Trucks sector's gain of 0.34% and lagged the S&P 500's gain of 3.92%.
Market participants will be closely following the financial results of Tesla in its upcoming release. The company's earnings per share (EPS) are projected to be $0.43, reflecting a 17.31% decrease from the same quarter last 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.89 per share and a revenue of $96.69 billion, indicating changes of -21.9% and -1.03%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. The Zacks Consensus EPS estimate has moved 0.65% higher within the past month. Tesla is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, Tesla is holding a Forward P/E ratio of 184.04. This represents a premium compared to its industry average Forward P/E of 11.45.
It is also worth noting that TSLA currently has a PEG ratio of 9.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Domestic industry currently had an average PEG ratio of 1.14 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 209, finds itself in the bottom 16% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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