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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 $243.49, moving -0.53% from the previous trading session. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Coming into today, shares of the electric car maker had gained 8.38% in the past month. In that same time, the Auto-Tires-Trucks sector gained 8.93%, while the S&P 500 gained 4.17%.

TSLA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.14, down 104.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.61 billion, down 3.18% from the year-ago period.

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.

It is also important to note the recent changes to analyst estimates for TSLA. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. 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 group has a Zacks Industry Rank of 83, putting it in the top 33% 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.

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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