In the latest trading session, Tesla ((TSLA)) closed at $693.73, marking a -0.84% move from the previous day. This change lagged the S&P 500’s 0.1% gain on the day. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq lost 0.59%.
Heading into today, shares of the electric car maker had lost 13.81% over the past month, lagging the Auto-Tires-Trucks sector’s loss of 7.56% and the S&P 500’s gain of 0.71% 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 $0.73, up 192% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.49 billion, up 58.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4 per share and revenue of $47.11 billion, which would represent changes of +78.57% and +49.4%, respectively, from the prior year.
Any recent changes to analyst estimates for (TSLA) should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.34% lower. (TSLA) currently has a Zacks Rank of #3 (Hold).
Digging into valuation, (TSLA) currently has a Forward P/E ratio of 174.7. This represents a premium compared to its industry’s average Forward P/E of 17.15.
It is also worth noting that (TSLA) currently has a PEG ratio of 5.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Automotive – Domestic was holding an average PEG ratio of 2.39 at yesterday’s closing price.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Tesla, Inc. ((TSLA)) : Free Stock Analysis Report
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