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Tesla (TSLA) Laps the Stock Market: Here's Why

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In the latest close session, Tesla (TSLA - Free Report) was up +2.18% at $378.69. The stock's change was more than the S&P 500's daily gain of 0.66%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 1.05%.

The electric car maker's shares have seen an increase of 4.66% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 3.2% and the S&P 500's gain of 0.55%.

Investors will be eagerly watching for the performance of Tesla in its upcoming earnings disclosure. The company is expected to report EPS of $0.45, down 10% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $27.61 billion, reflecting a 1.74% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $105.68 billion. These totals would mark changes of +6.02% and +11.45%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Tesla. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 witnessed a 5.02% decrease. Tesla is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Tesla currently has a Forward P/E ratio of 210.49. This expresses a premium compared to the average Forward P/E of 15.63 of its industry.

One should further note that TSLA currently holds a PEG ratio of 9.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Domestic stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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