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The Zacks Analyst Blog Highlights: Tesla, Facebook, Apple and Microsoft

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For Immediate Release

Chicago, IL – October 27, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tesla, Inc. (TSLA - Free Report) , Facebook, Inc. (FB - Free Report) , Apple Inc. (AAPL - Free Report) and Microsoft Corporation (MSFT - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Tesla a Screaming Buy as It Joins the Elite $1T Club

Tesla recently became the first junk-rated company to get its ticket into the coveted $1-trillion club. After all, the company’s debt may still be considered speculative-grade, per data amassed by Bloomberg. Nonetheless, the automaker’s shares popped 12.7% on Oct 25 and helped the company’s market capitalization reach nearly $1.03 trillion.

Incidentally, Tesla also became the second-fastest company to hit the $1-trillion mark. It reached the elite mark in little more than 12 years, second only to Facebook, which took just over nine years to reach the mark from its initial public offering.

Tesla is, at present, the fifth company in the history of the United States to be worth more than $1 trillion. Apple is currently the most valuable company globally at $2.5 trillion, followed by Microsoft, which is now worth $2.3 trillion.

Tesla, by the way, witnessed its shares climb almost 30% so far in October. In fact, yesterday’s jump in its share price helped Elon Musk add more than a whopping $20 billion to his net worth in a single day, making him the world’s richest man.

Tesla, in the meantime, has surpassed the combined market capitalization of the next nine biggest automakers. To put things into perspective, major peers such as Toyota, GM, and Ford are just worth $237 billion, $84 billion, and $64 billion, respectively.

In reality, the price leap in Tesla’s shares was triggered by news that Hertz would buy 100,000 of the automaker’s Model 3 fleet. Such a purchase will certainly help Tesla become a brand for the masses and not just the affluent. Presently, the Model 3 sells for about $40,000.

At the same time, upbeat third-quarter earnings results propelled Tesla’s share price higher. The electric vehicle manufacturer saw its revenues soar 57% to $13.8 billion in the third quarter, as mentioned in a Markets Insider article. The article further noted that Tesla’s adjusted earnings per share for the said quarter came in at $1.80, more than analysts’ estimate of $1.61. Despite supply-chain disruptions and issues related to chips, the automaker notched record performance in the third quarter and is further expected to do well banking on the continuous demand for its Model Y vehicles manufactured at the company’s plants in Berlin and Austin.

Tesla’s shares have surged more than 40% so far this year and are more likely to scale upward due to robust demand for electric vehicles (EV) in the near term. Citing a globenewswire article, the global EV market is expected to see a CAGR of 22% from 2021 to hit $700 billion by 2026, according to Facts and Factors.

And why not? As several countries aim to reduce carbon emissions, the demand for EVs is surging at the moment. No doubt, electrifying the fleets will reduce carbon emissions. What’s more, President Biden has also pledged to spend a staggering $174 billion to boost the EV market in the near future. All these should certainly stand in good stead for Tesla that has already played a pivotal role in transforming the EV market. Tesla, currently, is a dominant player in the EV segment and has compelled the world to rely more on sustainable energy.

Consequently, the company’s shares are expected to climb 149.6% this year. For the next year, shares of Tesla are projected to gain 29.3%. Additionally, the Zacks Consensus Estimate for its current-year earnings has moved up 10.5% over the past 60 days. Tesla boasts a Zacks Rank #1 (Strong Buy) and a Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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