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Tesla (TSLA) Stock Slides as Market Rises: Facts to Know Before You Trade

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The latest trading session saw Tesla (TSLA - Free Report) ending at $351.42, denoting a -1.59% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.05%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.4%.

Coming into today, shares of the electric car maker had gained 47.05% in the past month. In that same time, the Auto-Tires-Trucks sector gained 24.2%, while the S&P 500 gained 5.75%.

Analysts and investors alike will be keeping a close eye on the performance of Tesla in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.77, marking an 8.45% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $27.82 billion, indicating a 10.55% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $2.47 per share and a revenue of $99.65 billion, demonstrating changes of -20.83% and +2.97%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Tesla. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.53% higher within the past month. Tesla presently features a Zacks Rank of #1 (Strong Buy).

Investors should also note Tesla's current valuation metrics, including its Forward P/E ratio of 144.7. For comparison, its industry has an average Forward P/E of 12.76, which means Tesla is trading at a premium to the group.

Investors should also note that TSLA has a PEG ratio of 9.37 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. TSLA's industry had an average PEG ratio of 1.91 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 126, finds itself in the top 50% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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