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Tesla (TSLA) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest close session, Tesla (TSLA - Free Report) was down 1.8% at $439.15. This change lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1%.

Coming into today, shares of the electric car maker had lost 8.71% in the past month. In that same time, the Auto-Tires-Trucks sector gained 0.06%, while the S&P 500 gained 2.06%.

Market participants will be closely following the financial results of Tesla in its upcoming release. The company plans to announce its earnings on January 28, 2026. The company's upcoming EPS is projected at $0.44, signifying a 39.73% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $25.02 billion, indicating a 2.66% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.61 per share and revenue of $94.98 billion, indicating changes of -33.47% and 0%, respectively, compared to the previous year.

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 a result, we can interpret positive estimate revisions as a good sign for the business outlook.

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, 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. The Zacks Consensus EPS estimate has moved 5.28% lower within the past month. Right now, Tesla possesses a Zacks Rank of #4 (Sell).

Looking at its valuation, Tesla is holding a Forward P/E ratio of 199.27. Its industry sports an average Forward P/E of 14.51, so one might conclude that Tesla is trading at a premium comparatively.

It is also worth noting that TSLA currently has a PEG ratio of 5.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 2.03.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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