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Tesla (TSLA) is a Top-Ranked Growth Stock: Should You Buy?

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why This 1 Growth Stock Should Be On Your Watchlist

Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Tesla (TSLA)

Over the years, EV maker Tesla has evolved into a dynamic technology innovator. It has transformed the EV space much the same way as Amazon changed the retail landscape and Netflix revolutionized entertainment. Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share. The company’s flagship Model 3 is the best-selling EV model in the United States. Tesla, which has managed to garner the reputation of a gold standard over the years, is now a far bigger entity that what it started off since its IPO in 2010, with its market cap crossing $1 trillion for the first time in October 2021.  The EV king’s market capitalization is more than the combined value of legacy automakers including Toyota, Volkswagen, Daimler, General Motors and Ford.

TSLA sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of A, and has a VGM Score of B. Earnings and sales are forecasted to increase 67.6% and 59.4% year-over-year, respectively.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.13 to $11.36 per share. TSLA boasts an average earnings surprise of 41.3%.

Tesla is also cash rich. The company has generated cash flow growth of 95.7%, and is expected to report cash flow expansion of 177% in 2022.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, TSLA should be on investors' short lists.


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