Back to top

Image: Bigstock

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

Read MoreHide Full Article

Tesla (TSLA - Free Report) closed at $620.83 in the latest trading session, marking a -0.4% move from the prior day. This change lagged the S&P 500's daily gain of 1.4%.

Prior to today's trading, shares of the electric car maker had gained 7.3% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 7.7% and outpaced the S&P 500's gain of 1.07% in that time.

Investors will be hoping for strength from TSLA as it approaches its next earnings release. The company is expected to report EPS of $0.89, up 102.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.38 billion, up 88.57% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.32 per share and revenue of $49.39 billion, which would represent changes of +92.86% and +56.61%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TSLA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. 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 144.18 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.

We can also see that TSLA currently has a PEG ratio of 3.84. 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. The Automotive - Domestic industry currently had an average PEG ratio of 1.26 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 94, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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