U.S. markets closed
  • S&P 500

    4,179.76
    +60.55 (+1.47%)
     
  • Dow 30

    34,053.94
    -39.02 (-0.11%)
     
  • Nasdaq

    12,200.82
    +384.50 (+3.25%)
     
  • Russell 2000

    1,998.93
    +38.12 (+1.94%)
     
  • Crude Oil

    75.75
    -0.66 (-0.86%)
     
  • Gold

    1,912.80
    -15.00 (-0.78%)
     
  • Silver

    23.53
    -0.07 (-0.31%)
     
  • EUR/USD

    1.0913
    -0.0080 (-0.73%)
     
  • 10-Yr Bond

    3.3960
    -0.0010 (-0.03%)
     
  • GBP/USD

    1.2234
    -0.0138 (-1.11%)
     
  • USD/JPY

    128.6930
    -0.2320 (-0.18%)
     
  • BTC-USD

    23,759.93
    +95.08 (+0.40%)
     
  • CMC Crypto 200

    544.16
    -1.15 (-0.21%)
     
  • FTSE 100

    7,820.16
    +59.05 (+0.76%)
     
  • Nikkei 225

    27,402.05
    +55.17 (+0.20%)
     

Here's Why Tesla (TSLA) is a Strong Growth Stock

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why This 1 Growth Stock Should Be On Your Watchlist

Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Tesla (TSLA)

Over the years, EV maker Tesla has evolved into a dynamic technology innovator. It has transformed the EV space much the same way as Amazon changed the retail landscape and Netflix revolutionized entertainment. Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share. The company’s flagship Model 3 is the best-selling EV model in the United States. Tesla, which has managed to garner the reputation of a gold standard over the years, is now a far bigger entity that what it started off since its IPO in 2010, with its market cap crossing $1 trillion for the first time in October 2021.  The EV king’s market capitalization is more than the combined value of legacy automakers including Toyota, Volkswagen, Daimler, General Motors and Ford.

TSLA is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of A and VGM Score of A. Earnings are expected to grow 79.2% year-over-year for the current fiscal year, with sales growth of 54.2%.

Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.06 to $4.05 per share. TSLA boasts an average earnings surprise of 26.4%.

On a historic basis, Tesla has generated cash flow growth of 95.7%, and is expected to report cash flow expansion of 177% this year.

TSLA should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research