Back to top

Image: Bigstock

Tesla (TSLA) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Tesla (TSLA - Free Report) closed at $854.41, marking a +0.59% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.23%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.43%.

Coming into today, shares of the electric car maker had gained 34.14% in the past month. In that same time, the Auto-Tires-Trucks sector gained 17.8%, while the S&P 500 gained 3.86%.

Wall Street will be looking for positivity from TSLA as it approaches its next earnings report date. In that report, analysts expect TSLA to post earnings of $0.84 per share. This would mark year-over-year growth of 95.35%. Meanwhile, our latest consensus estimate is calling for revenue of $9.98 billion, up 35.13% from the prior-year quarter.

Any recent changes to analyst estimates for TSLA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. TSLA is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, TSLA currently has a Forward P/E ratio of 231.09. Its industry sports an average Forward P/E of 16.24, so we one might conclude that TSLA is trading at a premium comparatively.

Meanwhile, TSLA's PEG ratio is currently 6.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 2.35 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 33, which puts it in the top 13% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Tesla, Inc. (TSLA) - free report >>

Published in