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

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Tesla (TSLA - Free Report) ended the recent trading session at $176.75, demonstrating a -1.39% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.59%.

The electric car maker's shares have seen a decrease of 7.63% over the last month, not keeping up with the Auto-Tires-Trucks sector's loss of 0.12% and the S&P 500's gain of 4.19%.

Market participants will be closely following the financial results of Tesla in its upcoming release. The company is predicted to post an EPS of $0.60, indicating a 34.07% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $24.9 billion, indicating a 0.12% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.47 per share and revenue of $99 billion. These totals would mark changes of -20.83% and +2.3%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Tesla. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 past month, the Zacks Consensus EPS estimate has moved 5.1% lower. Right now, Tesla possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Tesla is holding a Forward P/E ratio of 72.62. This represents a premium compared to its industry's average Forward P/E of 13.25.

One should further note that TSLA currently holds a PEG ratio of 3.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% 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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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