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Tesla (TSLA) Declines More Than Market: Some Information for Investors

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In the latest trading session, Tesla (TSLA - Free Report) closed at $475.19, marking a -2.1% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.09%.

The electric car maker's shares have seen an increase of 13.79% over the last month, surpassing the Auto-Tires-Trucks sector's gain of 12.09% and the S&P 500's gain of 2.57%.

Analysts and investors alike will be keeping a close eye on the performance of Tesla in its upcoming earnings disclosure. On that day, Tesla is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 36.99%. Meanwhile, our latest consensus estimate is calling for revenue of $24.76 billion, down 3.7% from the prior-year quarter.

TSLA's full-year Zacks Consensus Estimates are calling for earnings of $1.63 per share and revenue of $94.76 billion. These results would represent year-over-year changes of -32.64% and -3%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Tesla. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.02% lower. At present, Tesla boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Tesla is at present trading with a Forward P/E ratio of 297.94. For comparison, its industry has an average Forward P/E of 16.69, which means Tesla is trading at a premium to the group.

We can also see that TSLA currently has a PEG ratio of 8.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.97.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons 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.

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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