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Tesla (TSLA) Surpasses Market Returns: Some Facts Worth Knowing

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The most recent trading session ended with Tesla (TSLA - Free Report) standing at $174.60, reflecting a +1.65% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.74%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, added 1.68%.

Prior to today's trading, shares of the electric car maker had gained 1.35% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 0.32% and the S&P 500's gain of 0.8% in that time.

Investors will be eagerly watching for the performance of Tesla in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 23, 2024. It is anticipated that the company will report an EPS of $0.52, marking a 38.82% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $23.35 billion, indicating a 0.09% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $2.71 per share and a revenue of $107.06 billion, demonstrating changes of -13.14% and +10.63%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 7.76% lower. Currently, Tesla is carrying a Zacks Rank of #4 (Sell).

With respect to valuation, Tesla is currently being traded at a Forward P/E ratio of 63.47. This valuation marks a premium compared to its industry's average Forward P/E of 14.54.

Investors should also note that TSLA has a PEG ratio of 2.84 right now. 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. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 2.16.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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