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Tesla (TSLA) Stock Dips While Market Gains: Key Facts

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The latest trading session saw Tesla (TSLA - Free Report) ending at $239.79, denoting a -1.78% adjustment from its last day's close. This change lagged the S&P 500's 0.38% gain on the day. Elsewhere, the Dow saw an upswing of 1.47%, while the tech-heavy Nasdaq depreciated by 0.23%.

The electric car maker's shares have seen an increase of 18.71% over the last month, surpassing the Auto-Tires-Trucks sector's gain of 13.35% and the S&P 500's gain of 10.72%.

Analysts and investors alike will be keeping a close eye on the performance of Tesla in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.74, indicating a 37.82% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $25.8 billion, up 6.09% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.17 per share and a revenue of $97.54 billion, signifying shifts of -22.11% and +19.74%, respectively, from the last year.

Any recent changes to analyst estimates for Tesla should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.14% decrease. Tesla is holding a Zacks Rank of #5 (Strong Sell) right now.

From a valuation perspective, Tesla is currently exchanging hands at a Forward P/E ratio of 77.1. This represents a premium compared to its industry's average Forward P/E of 9.47.

Also, we should mention that TSLA has a PEG ratio of 3.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Automotive - Domestic industry held an average PEG ratio of 1.28.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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