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Here's Why Tesla (TSLA) Fell More Than Broader Market
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Tesla (TSLA - Free Report) closed at $372.11 in the latest trading session, marking a -3.59% move from the prior day. This change lagged the S&P 500's daily loss of 1.74%. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 2.38%.
Heading into today, shares of the electric car maker had lost 7.53% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 8.68% and lagging the S&P 500's loss of 4.99%.
The upcoming earnings release of Tesla will be of great interest to investors. In that report, analysts expect Tesla to post earnings of $0.39 per share. This would mark year-over-year growth of 44.44%. Meanwhile, our latest consensus estimate is calling for revenue of $22.53 billion, up 16.52% from the prior-year quarter.
TSLA's full-year Zacks Consensus Estimates are calling for earnings of $2.08 per share and revenue of $102.84 billion. These results would represent year-over-year changes of +25.3% and +8.45%, respectively.
It is also important to note the recent changes to analyst estimates for Tesla. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Tesla currently has a Zacks Rank of #3 (Hold).
Investors should also note Tesla's current valuation metrics, including its Forward P/E ratio of 185.89. This expresses a premium compared to the average Forward P/E of 13.32 of its industry.
We can additionally observe that TSLA currently boasts a PEG ratio of 7.9. 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. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 0.98.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 180, positioning it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Here's Why Tesla (TSLA) Fell More Than Broader Market
Tesla (TSLA - Free Report) closed at $372.11 in the latest trading session, marking a -3.59% move from the prior day. This change lagged the S&P 500's daily loss of 1.74%. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 2.38%.
Heading into today, shares of the electric car maker had lost 7.53% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 8.68% and lagging the S&P 500's loss of 4.99%.
The upcoming earnings release of Tesla will be of great interest to investors. In that report, analysts expect Tesla to post earnings of $0.39 per share. This would mark year-over-year growth of 44.44%. Meanwhile, our latest consensus estimate is calling for revenue of $22.53 billion, up 16.52% from the prior-year quarter.
TSLA's full-year Zacks Consensus Estimates are calling for earnings of $2.08 per share and revenue of $102.84 billion. These results would represent year-over-year changes of +25.3% and +8.45%, respectively.
It is also important to note the recent changes to analyst estimates for Tesla. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Tesla currently has a Zacks Rank of #3 (Hold).
Investors should also note Tesla's current valuation metrics, including its Forward P/E ratio of 185.89. This expresses a premium compared to the average Forward P/E of 13.32 of its industry.
We can additionally observe that TSLA currently boasts a PEG ratio of 7.9. 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. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 0.98.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 180, positioning it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.