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When thinking of exciting investments, Tesla (TSLA - Free Report) shares undoubtedly jump to the forefront of many minds. After all, it’s easy to understand why, as the company has entirely changed the way we see the automotive industry.
And it goes without saying that TSLA shares have rewarded investors handsomely over the last decade, up more than a mind-boggling 6000%.
Image Source: Zacks Investment Research
However, over the last month, TSLA shares have significantly lagged behind the general market, down more than 15% vs. the S&P 500’s marginal 0.6% gain.
With shares deep in the red year-to-date, it raises a valid question: how does the company currently stack up? Let’s take a closer look.
Quarterly Performance
Despite the recent poor share performance, Tesla has consistently delivered better-than-expected bottom-line results, exceeding the Zacks Consensus EPS Estimate by more than 10% in its latest print.
In fact, Tesla has exceeded the Zacks Consensus EPS Estimate in seven consecutive quarters, all by double-digit percentages.
Still, revenue results have come in under expectations as of late, with the company penciling in back-to-back revenue misses. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Growth Outlook
Despite a hawkish Fed and rising logistical costs playing spoilsport for the company, Tesla still boasts an impressive growth profile; earnings are forecasted to soar nearly 80% Y/Y in FY22 and a further 30% in FY23.
The projected growth in earnings comes on top of forecasted Y/Y revenue upticks of 54% in FY22 and 38% in FY23.
Image Source: Zacks Investment Research
Valuation
It’s no secret that Tesla shares are pricey, currently trading at a 6.1X forward price-to-sales ratio. Still, on a relative basis, the value is beneath its 6.5X five-year median value and highs of 23.9X in 2021.
Image Source: Zacks Investment Research
TSLA carries a Style Score of a “D” for Value.
Bottom Line
Tesla (TSLA - Free Report) shares have displayed a high level of weakness relative to the general market over the last month, indicating that sellers have taken a tight grip.
Still, despite the poor share performance, Tesla has managed to post strong bottom-line results, chaining together a nice streak of positive EPS surprises that are all in the double-digit percentage range.
In addition, investors will have to fork up a hefty premium for the company’s shares, typical within stocks with high-growth profiles.
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What's Going On With Tesla Shares?
When thinking of exciting investments, Tesla (TSLA - Free Report) shares undoubtedly jump to the forefront of many minds. After all, it’s easy to understand why, as the company has entirely changed the way we see the automotive industry.
And it goes without saying that TSLA shares have rewarded investors handsomely over the last decade, up more than a mind-boggling 6000%.
Image Source: Zacks Investment Research
However, over the last month, TSLA shares have significantly lagged behind the general market, down more than 15% vs. the S&P 500’s marginal 0.6% gain.
With shares deep in the red year-to-date, it raises a valid question: how does the company currently stack up? Let’s take a closer look.
Quarterly Performance
Despite the recent poor share performance, Tesla has consistently delivered better-than-expected bottom-line results, exceeding the Zacks Consensus EPS Estimate by more than 10% in its latest print.
In fact, Tesla has exceeded the Zacks Consensus EPS Estimate in seven consecutive quarters, all by double-digit percentages.
Still, revenue results have come in under expectations as of late, with the company penciling in back-to-back revenue misses. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Growth Outlook
Despite a hawkish Fed and rising logistical costs playing spoilsport for the company, Tesla still boasts an impressive growth profile; earnings are forecasted to soar nearly 80% Y/Y in FY22 and a further 30% in FY23.
The projected growth in earnings comes on top of forecasted Y/Y revenue upticks of 54% in FY22 and 38% in FY23.
Image Source: Zacks Investment Research
Valuation
It’s no secret that Tesla shares are pricey, currently trading at a 6.1X forward price-to-sales ratio. Still, on a relative basis, the value is beneath its 6.5X five-year median value and highs of 23.9X in 2021.
Image Source: Zacks Investment Research
TSLA carries a Style Score of a “D” for Value.
Bottom Line
Tesla (TSLA - Free Report) shares have displayed a high level of weakness relative to the general market over the last month, indicating that sellers have taken a tight grip.
Still, despite the poor share performance, Tesla has managed to post strong bottom-line results, chaining together a nice streak of positive EPS surprises that are all in the double-digit percentage range.
In addition, investors will have to fork up a hefty premium for the company’s shares, typical within stocks with high-growth profiles.