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Tesla (TSLA) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Tesla (TSLA - Free Report) closed at $155.45, marking a -1.06% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. Meanwhile, the Dow experienced a drop of 0.12%, and the technology-dominated Nasdaq saw a decrease of 1.15%.

Coming into today, shares of the electric car maker had lost 8.29% in the past month. In that same time, the Auto-Tires-Trucks sector lost 3.4%, while the S&P 500 lost 1.09%.

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. The company is predicted to post an EPS of $0.46, indicating a 45.88% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $22.17 billion, showing a 4.96% drop compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.53 per share and a revenue of $102.16 billion, representing changes of -18.91% and +5.56%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Tesla. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 17.42% lower. Tesla is currently sporting a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Tesla is presently trading at a Forward P/E ratio of 62.2. This denotes a premium relative to the industry's average Forward P/E of 14.4.

One should further note that TSLA currently holds a PEG ratio of 3.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 2.09.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.

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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