In the latest trading session, Tesla (TSLA) closed at $176.29, marking a -1.01% move from the previous day. This change lagged the S&P 500’s 0.11% gain on the day. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, added 0.56%.
Shares of the electric car maker have depreciated by 1.72% over the course of the past month, outperforming the Auto-Tires-Trucks sector’s loss of 2.26% and lagging the S&P 500’s gain of 5.06%.
Investors will be eagerly watching for the performance of Tesla in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.60, indicating a 34.07% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $24.9 billion, indicating a 0.12% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.47 per share and a revenue of $99 billion, demonstrating changes of -20.83% and +2.3%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Tesla. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 5.1% downward. Tesla is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Tesla is presently trading at a Forward P/E ratio of 72.15. For comparison, its industry has an average Forward P/E of 13.01, which means Tesla is trading at a premium to the group.
It’s also important to note that TSLA currently trades at a PEG ratio of 3.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The average PEG ratio for the Automotive – Domestic industry stood at 1.39 at the close of the market yesterday.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This comprehensive analysis of Tesla’s recent performance, upcoming earnings disclosure, and industry comparisons provides valuable insights for investors looking to make informed decisions in the stock market. Stay tuned for further updates on Tesla’s trajectory and market trends.
