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Tesla (TSLA) Outpaces Stock Market Gains: What You Should Know

·3 min read

In the latest trading session, Tesla (TSLA) closed at $309.07, marking a +1.89% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.2%.

Prior to today's trading, shares of the electric car maker had gained 2.25% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 5.89% and the S&P 500's loss of 9.94% in that time.

Investors will be hoping for strength from Tesla as it approaches its next earnings release. In that report, analysts expect Tesla to post earnings of $0.92 per share. This would mark year-over-year growth of 48.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.94 billion, up 66.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.99 per share and revenue of $85.24 billion. These totals would mark changes of +76.55% and +58.38%, respectively, from last year.

Any recent changes to analyst estimates for Tesla should also be noted by investors. Recent revisions tend to reflect the latest near-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. The Zacks Consensus EPS estimate has moved 1.49% higher within the past month. Tesla is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Tesla currently has a Forward P/E ratio of 76.1. This valuation marks a premium compared to its industry's average Forward P/E of 10.85.

We can also see that TSLA currently has a PEG ratio of 2.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 0.86 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% 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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