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

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Tesla (TSLA - Free Report) closed at $251.60 in the latest trading session, marking a +0.55% move from the prior day. This move outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.

Coming into today, shares of the electric car maker had gained 2.13% in the past month. In that same time, the Auto-Tires-Trucks sector lost 1.52%, while the S&P 500 lost 4.45%.

Wall Street will be looking for positivity from Tesla as it approaches its next earnings report date. In that report, analysts expect Tesla to post earnings of $0.77 per share. This would mark a year-over-year decline of 26.67%. Meanwhile, our latest consensus estimate is calling for revenue of $25.08 billion, up 16.88% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.44 per share and revenue of $100.13 billion, which would represent changes of -15.48% and +22.91%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Tesla. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 0.56% lower within the past month. Tesla currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Tesla has a Forward P/E ratio of 72.74 right now. This valuation marks a premium compared to its industry's average Forward P/E of 10.01.

We can also see that TSLA currently has a PEG ratio of 3.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TSLA's industry had an average PEG ratio of 1.26 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 88, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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