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Tesla (TSLA) Stock Moves -0.18%: What You Should Know

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In the latest trading session, Tesla (TSLA - Free Report) closed at $758.26, marking a -0.18% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.15%.

Prior to today's trading, shares of the electric car maker had lost 15.87% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 6.2% and the S&P 500's gain of 0.89% in that time.

Tesla will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.13, up 46.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.59 billion, up 55.46% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.18 per share and revenue of $85.77 billion. These totals would mark changes of +64.9% and +59.36%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Tesla. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% lower. Tesla is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Tesla is holding a Forward P/E ratio of 67.94. For comparison, its industry has an average Forward P/E of 11.38, which means Tesla is trading at a premium to the group.

Also, we should mention that TSLA has a PEG ratio of 2.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TSLA's industry had an average PEG ratio of 1.1 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 183, which puts it in the bottom 28% 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.

To follow TSLA in the coming trading sessions, be sure to utilize Zacks.com.


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