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Tesla (TSLA) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Tesla (TSLA) closed at $940.67 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500's 0.78% loss on the day. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq gained 0.29%.

Investors will be hoping for strength from TSLA as it approaches its next earnings release. In that report, analysts expect TSLA to post earnings of -$1.03 per share. This would mark year-over-year growth of 8.04%. Our most recent consensus estimate is calling for quarterly revenue of $4.67 billion, down 26.38% from the year-ago period.

TSLA's full-year Zacks Consensus Estimates are calling for earnings of $4.59 per share and revenue of $26.85 billion. These results would represent year-over-year changes of +3430.77% and +9.23%, respectively.

Investors should also note any recent changes to analyst estimates for TSLA. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TSLA is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, TSLA currently has a Forward P/E ratio of 207.01. This valuation marks a premium compared to its industry's average Forward P/E of 28.59.

It is also worth noting that TSLA currently has a PEG ratio of 5.17. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 3.06 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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