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Tesla (TSLA) Gains But Lags Market: What You Should Know

Zacks Equity Research

Tesla (TSLA) closed at $244.74 in the latest trading session, marking a +0.09% move from the prior day. The stock lagged the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.6%.

Coming into today, shares of the electric car maker had lost 1.04% in the past month. In that same time, the Auto-Tires-Trucks sector lost 3.98%, while the S&P 500 lost 1.87%.

Investors will be hoping for strength from TSLA as it approaches its next earnings release, which is expected to be October 23, 2019. On that day, TSLA is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 104.14%. Meanwhile, our latest consensus estimate is calling for revenue of $6.60 billion, down 3.25% from the prior-year quarter.

TSLA's full-year Zacks Consensus Estimates are calling for earnings of -$3.09 per share and revenue of $24.82 billion. These results would represent year-over-year changes of -132.33% and +15.66%, respectively.

Investors might also notice recent changes to analyst estimates for TSLA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. TSLA is holding a Zacks Rank of #3 (Hold) right now.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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