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Tesla (TSLA) Dips More Than Broader Markets: What You Should Know

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Tesla (TSLA - Free Report) closed at $127.17 in the latest trading session, marking a -1.25% move from the prior day. This move lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 10.92%.

Coming into today, shares of the electric car maker had lost 6.39% in the past month. In that same time, the Auto-Tires-Trucks sector lost 4.02%, while the S&P 500 gained 2.18%.

Tesla will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2023. On that day, Tesla is projected to report earnings of $1.14 per share, which would represent year-over-year growth of 34.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.82 billion, up 40.08% from the year-ago period.

Any recent changes to analyst estimates for Tesla should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.9% lower within the past month. Tesla is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note Tesla's current valuation metrics, including its Forward P/E ratio of 26.89. Its industry sports an average Forward P/E of 11.7, so we one might conclude that Tesla is trading at a premium comparatively.

We can also see that TSLA currently has a PEG ratio of 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TSLA's industry had an average PEG ratio of 1.02 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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