In the latest trading session, Tesla (TSLA) closed at $381.26, marking a +2.56% move from the previous day. The stock’s performance was ahead of the S&P 500’s daily gain of 0.72%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 1.16%.
The electric car maker’s shares have seen a decrease of 5.27% over the last month, surpassing the Auto-Tires-Trucks sector’s loss of 8.91% and falling behind the S&P 500’s loss of 4.99%.
The investment community will be closely monitoring the performance of Tesla in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.39, marking a 44.44% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $22.53 billion, up 16.52% from the year-ago period.
TSLA’s full-year Zacks Consensus Estimates are calling for earnings of $2.08 per share and revenue of $102.8 billion. These results would represent year-over-year changes of +25.3% and +8.41%, respectively.
It is also important to note the recent changes to analyst estimates for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. Tesla presently features a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Tesla has a Forward P/E ratio of 179.16 right now. This valuation marks a premium compared to its industry average Forward P/E of 13.49.
We can also see that TSLA currently has a PEG ratio of 7.62. 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. As of the close of trade yesterday, the Automotive – Domestic industry held an average PEG ratio of 0.97.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 184, finds itself in the bottom 25% echelons of all 250+ industries.
