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

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In the latest trading session, Tesla (TSLA - Free Report) closed at $701.16, marking a -1.41% move from the previous day. This change lagged the S&P 500's 0.58% loss on the day.

Coming into today, shares of the electric car maker had gained 9.93% in the past month. In that same time, the Auto-Tires-Trucks sector gained 1.44%, while the S&P 500 gained 2.07%.

TSLA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.25, up 64.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.93 billion, up 47.4% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.06 per share and revenue of $50.41 billion, which would represent changes of +125.89% and +59.86%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TSLA. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 29.94% higher. TSLA is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, TSLA is holding a Forward P/E ratio of 140.53. This represents a premium compared to its industry's average Forward P/E of 14.33.

We can also see that TSLA currently has a PEG ratio of 4.01. 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. TSLA's industry had an average PEG ratio of 1.12 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 123, putting it in the top 49% 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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