Tesla (TSLA) closed the most recent trading day at $284.82, moving -1.14% from the previous trading session. This change lagged the S&P 500's 0.67% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the electric car maker had lost 3.05% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 28.99% and lagging the S&P 500's gain of 3.65% in that time.
Tesla will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.90, up 45.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.95 billion, up 66.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.73 per share and revenue of $85.14 billion, which would represent changes of +65.04% and +58.19%, respectively, from the prior year.
Any recent changes to analyst estimates for Tesla should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Tesla is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Tesla currently has a Forward P/E ratio of 77.18. This valuation marks a premium compared to its industry's average Forward P/E of 11.6.
Also, we should mention that TSLA has a PEG ratio of 2.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Domestic industry currently had an average PEG ratio of 0.87 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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