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Tesla (TSLA) Dips More Than Broader Market: What You Should Know

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Tesla (TSLA - Free Report) ended the recent trading session at $467.22, demonstrating a -4.63% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1.81%.

Coming into today, shares of the electric car maker had gained 22.09% in the past month. In that same time, the Auto-Tires-Trucks sector gained 13.66%, while the S&P 500 gained 1.03%.

The upcoming earnings release of Tesla will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.47, reflecting a 35.62% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $24.87 billion, indicating a 3.25% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and revenue of $94.86 billion, which would represent changes of -32.23% and -2.89%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Tesla. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Right now, Tesla possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Tesla is currently trading at a Forward P/E ratio of 298.4. This valuation marks a premium compared to its industry average Forward P/E of 16.82.

One should further note that TSLA currently holds a PEG ratio of 8.53. 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. The Automotive - Domestic industry had an average PEG ratio of 1.92 as trading concluded yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 100, putting it in the top 41% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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