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

Zacks Equity Research
Hope Bancorp (HOPE) delivered earnings and revenue surprises of 0.00% and -3.03%, respectively, for the quarter ended September 2018. Do the numbers hold clues to what lies ahead for the stock?

In the latest trading session, Tesla (TSLA) closed at $298.33, marking a -0.11% move from the previous day. This move lagged the S&P 500's daily gain of 0.78%. At the same time, the Dow added 0.95%, and the tech-heavy Nasdaq gained 0.98%.

Coming into today, shares of the electric car maker had lost 7.03% in the past month. In that same time, the Auto-Tires-Trucks sector gained 1.76%, while the S&P 500 gained 2.17%.

Investors will be hoping for strength from TSLA as it approaches its next earnings release, which is expected to be November 7, 2018. The company is expected to report EPS of -$0.68, up 76.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.55 billion, up 85.88% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$6.60 per share and revenue of $19.48 billion, which would represent changes of +23.79% and +65.66%, respectively, from the prior year.

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.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TSLA is currently sporting a Zacks Rank of #3 (Hold).

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% 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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