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

Zacks Equity Research

Tesla (TSLA) closed the most recent trading day at $245.87, moving -0.5% from the previous trading session. This change lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.3%.

Heading into today, shares of the electric car maker had gained 12.51% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 5.91% and the S&P 500's gain of 2.99% in that time.

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 -$0.14 per share. This would mark a year-over-year decline of 104.83%. Meanwhile, our latest consensus estimate is calling for revenue of $6.61 billion, down 3.18% from the prior-year quarter.

TSLA's full-year Zacks Consensus Estimates are calling for earnings of -$3.16 per share and revenue of $24.83 billion. These results would represent year-over-year changes of -137.59% and +15.68%, respectively.

Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TSLA currently has a Zacks Rank of #4 (Sell).

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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