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Tesla (TSLA) Exceeds Market Returns: Some Facts to Consider
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Tesla (TSLA - Free Report) ended the recent trading session at $366.37, demonstrating a +2.32% change from the preceding day's closing price. This change outpaced the S&P 500's 1.14% gain on the day. Elsewhere, the Dow saw an upswing of 0.61%, while the tech-heavy Nasdaq appreciated by 1.69%.
Prior to today's trading, shares of the electric car maker had gained 1.98% outpaced the Auto-Tires-Trucks sector's gain of 0.51% and the S&P 500's loss of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Tesla in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.47, signifying a 6.00% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $27.95 billion, indicating a 0.5% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.79 per share and a revenue of $105.97 billion, representing changes of +7.83% and +11.75%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Tesla currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Tesla is at present trading with a Forward P/E ratio of 200.93. This valuation marks a premium compared to its industry average Forward P/E of 17.48.
It is also worth noting that TSLA currently has a PEG ratio of 8.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Automotive - Domestic industry held an average PEG ratio of 1.05.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
View the Zacks #1 Rank List
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Tesla (TSLA) Exceeds Market Returns: Some Facts to Consider
Tesla (TSLA - Free Report) ended the recent trading session at $366.37, demonstrating a +2.32% change from the preceding day's closing price. This change outpaced the S&P 500's 1.14% gain on the day. Elsewhere, the Dow saw an upswing of 0.61%, while the tech-heavy Nasdaq appreciated by 1.69%.
Prior to today's trading, shares of the electric car maker had gained 1.98% outpaced the Auto-Tires-Trucks sector's gain of 0.51% and the S&P 500's loss of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Tesla in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.47, signifying a 6.00% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $27.95 billion, indicating a 0.5% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.79 per share and a revenue of $105.97 billion, representing changes of +7.83% and +11.75%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Tesla currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Tesla is at present trading with a Forward P/E ratio of 200.93. This valuation marks a premium compared to its industry average Forward P/E of 17.48.
It is also worth noting that TSLA currently has a PEG ratio of 8.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Automotive - Domestic industry held an average PEG ratio of 1.05.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.