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Tesla (TSLA) Gains But Lags Market: What You Should Know

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In the latest trading session, Tesla (TSLA - Free Report) closed at $335.35, marking a +0.12% move from the previous day. The stock lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.08%.

Heading into today, shares of the electric car maker had lost 8.27% over the past month, lagging the Auto-Tires-Trucks sector's loss of 0.71% and the S&P 500's loss of 3.04% in that time.

Investors will be hoping for strength from TSLA as it approaches its next earnings release, which is expected to be February 6, 2019. On that day, TSLA is projected to report earnings of $2.11 per share, which would represent year-over-year growth of 169.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.02 billion, up 113.63% from the year-ago period.

Investors might also notice recent changes to analyst estimates for TSLA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.05% lower. TSLA currently has a Zacks Rank of #3 (Hold).

In terms of valuation, TSLA is currently trading at a Forward P/E ratio of 57.11. This valuation marks a premium compared to its industry's average Forward P/E of 9.93.

It is also worth noting that TSLA currently has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Domestic industry currently had an average PEG ratio of 1.24 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.




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