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

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Tesla (TSLA - Free Report) closed at $655.29 in the latest trading session, marking a -0.79% move from the prior day. This move lagged the S&P 500's daily gain of 0.82%.

Heading into today, shares of the electric car maker had gained 5.9% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 0.71% and the S&P 500's gain of 3.89% in that time.

Wall Street will be looking for positivity from TSLA as it approaches its next earnings report date. This is expected to be July 26, 2021. The company is expected to report EPS of $0.90, up 104.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.39 billion, up 88.68% from the prior-year quarter.

TSLA's full-year Zacks Consensus Estimates are calling for earnings of $4.29 per share and revenue of $49.27 billion. These results would represent year-over-year changes of +91.52% and +56.24%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. TSLA is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, TSLA currently has a Forward P/E ratio of 153.85. Its industry sports an average Forward P/E of 15.13, so we one might conclude that TSLA is trading at a premium comparatively.

We can also see that TSLA currently has a PEG ratio of 4.1. 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. The Automotive - Domestic industry currently had an average PEG ratio of 1.19 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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