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

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In the latest trading session, Tesla (TSLA - Free Report) closed at $739.38, marking a +1.26% move from the previous day. This move outpaced the S&P 500's daily loss of 0.08%.

Coming into today, shares of the electric car maker had gained 3.38% in the past month. In that same time, the Auto-Tires-Trucks sector gained 3.69%, while the S&P 500 lost 1.81%.

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 $1.26 per share. This would mark year-over-year growth of 65.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.93 billion, up 47.4% from the year-ago period.

TSLA's full-year Zacks Consensus Estimates are calling for earnings of $5.12 per share and revenue of $50.41 billion. These results would represent year-over-year changes of +128.57% and +59.86%, respectively.

Investors should also note any recent changes to analyst estimates for TSLA. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TSLA is currently a Zacks Rank #3 (Hold).

In terms of valuation, TSLA is currently trading at a Forward P/E ratio of 142.61. For comparison, its industry has an average Forward P/E of 13.95, which means TSLA is trading at a premium to the group.

It is also worth noting that TSLA currently has a PEG ratio of 3.8. 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 1.11 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 177, which puts it in the bottom 31% 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.

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