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

Zacks Equity Research

Tesla (TSLA) closed at $378.99 in the latest trading session, marking a -0.66% move from the prior day. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.

Prior to today's trading, shares of the electric car maker had gained 9% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 0.93% and the S&P 500's gain of 1.82% in that time.

TSLA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.23, down 36.27% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.97 billion, down 3.59% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.50 per share and revenue of $24.27 billion. These totals would mark changes of +62.41% and +13.11%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for TSLA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.13% higher. TSLA is currently a Zacks Rank #2 (Buy).

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 79, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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