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Tesla (TSLA) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Tesla (TSLA) closed at $425.25, marking a +1.44% move from the previous day. This move outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.08%.

Prior to today's trading, shares of the electric car maker had gained 24.64% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 4.19% and the S&P 500's gain of 3.81% in that time.

Wall Street will be looking for positivity from TSLA as it approaches its next earnings report date. In that report, analysts expect TSLA to post earnings of $1.23 per share. This would mark a year-over-year decline of 36.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.97 billion, down 3.59% from the year-ago period.

TSLA's full-year Zacks Consensus Estimates are calling for earnings of -$0.50 per share and revenue of $24.27 billion. These results would represent year-over-year changes of +62.41% and +13.11%, respectively.

It is also important to note the recent changes to analyst estimates for TSLA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 has moved 1.13% higher. TSLA currently has a Zacks Rank of #2 (Buy).

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% 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.

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


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