Tesla (TSLA) closed at $395.76 in the latest trading session, marking a -2.96% move from the prior day. This move lagged the S&P 500’s daily loss of 1.52%. Elsewhere, the Dow saw a downswing of 1.56%, while the tech-heavy Nasdaq depreciated by 1.78%.
Heading into today, shares of the electric car maker had lost 4.78% over the past month, outpacing the Auto-Tires-Trucks sector’s loss of 6.5% and lagging the S&P 500’s loss of 2.25%.
Market participants will be closely following the financial results of Tesla in its upcoming release. The company is forecasted to report an EPS of $0.39, showcasing a 44.44% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $22.51 billion, indicating a 16.43% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.08 per share and a revenue of $102.71 billion, demonstrating changes of +25.3% and +8.32%, respectively, from the preceding 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. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.9% lower within the past month. Right now, Tesla possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Tesla currently has a Forward P/E ratio of 196.42. For comparison, its industry has an average Forward P/E of 15.35, which means Tesla is trading at a premium to the group.
Meanwhile, TSLA’s PEG ratio is currently 8.35. 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 0.99 based on yesterday’s closing prices.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 86, putting it in the top 36% of all 250+ industries.
