The latest trading session ended with Tesla (TSLA) trading at $227.87, representing a +0.48% change from the previous trading day’s close. The stock’s move was more pronounced than the S&P 500’s daily gain of 0.03%. Meanwhile, the Dow lost 0.04% and the Nasdaq, a tech-heavy index, gained 0.2%.
Prior to today’s trading, shares of the electric car maker had gained 1.82% over the past month, lagging the Auto-Tires-Trucks sector’s gain of 1.96% and outperforming the S&P 500’s gain of 1.54% in that time.
Analysts and investors will be keeping a close eye on Tesla’s performance in its upcoming earnings release. In that report, analysts expect Tesla to report earnings of $0.58 per share, which would represent a year-over-year decline of 12.12%. At the same time, our latest consensus estimate is for revenue of $25.73 billion, up 10.18% from the corresponding quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.27 per share and revenue of $98.9 billion, representing changes of -27.24% and +2.19%, respectively, from the prior year.
Investors may also notice recent changes in analyst estimates for Tesla. These changes typically reflect the latest short-term business trends, which can change frequently. Therefore, positive changes in estimates indicate analyst optimism about the company’s business and profitability.
Our research has shown that these estimate changes are directly linked to near-term stock price movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable track record backed by third-party audits. Stocks ranked #1 have delivered an average annual return of +25% since 1988. Over the past month, the Zacks Consensus Estimate for earnings per share remained stable. Tesla currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Tesla is currently trading at a P/E ratio of 99.9, which represents a premium compared to the industry average P/E ratio of 13.36.
It is also worth noting that TSLA currently has a PEG ratio of 4.62. The PEG ratio is similar to the widely used P/E ratio, but this value also takes into account the company’s expected earnings growth rate. The average PEG ratio for the Automotive (Domestic) industry was 1.43 at market close yesterday.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank evaluates the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep an eye on all of these and other stock-moving metrics in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Download the 7 best stocks for the next 30 days today. Click here to get this free report
Tesla, Inc. (TSLA): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
