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Tesla (TSLA) Gains But Lags Market: What You Should Know

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Tesla (TSLA - Free Report) closed at $425.92 in the latest trading session, marking a +0.15% move from the prior day. This change lagged the S&P 500's 0.8% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.5%.

Investors will be hoping for strength from TSLA as it approaches its next earnings release. In that report, analysts expect TSLA to post earnings of $0.54 per share. This would mark year-over-year growth of 45.95%. Meanwhile, our latest consensus estimate is calling for revenue of $7.92 billion, up 25.66% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.80 per share and revenue of $29.58 billion. These totals would mark changes of +5900% and +20.34%, respectively, from last year.

Any recent changes to analyst estimates for TSLA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.84% lower. TSLA currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TSLA has a Forward P/E ratio of 235.7 right now. This valuation marks a premium compared to its industry's average Forward P/E of 30.14.

It is also worth noting that TSLA currently has a PEG ratio of 6.73. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 4.4 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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