Tesla (TSLA) closed at $317.66 in the latest trading session, marking a -1.84% move from the prior day. This change lagged the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.48%.
The electric car maker's shares have seen a decrease of 6.59% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 6.69% and falling behind the S&P 500's gain of 4.27%.
Investors will be eagerly watching for the performance of Tesla in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.43, indicating a 17.31% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $23.31 billion, showing a 8.57% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.88 per share and a revenue of $96.69 billion, indicating changes of -22.31% and -1.03%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Tesla. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.2% lower. As of now, Tesla holds a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Tesla is currently trading at a Forward P/E ratio of 171.72. This valuation marks a premium compared to its industry average Forward P/E of 11.52.
Investors should also note that TSLA has a PEG ratio of 9.03 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Automotive - Domestic industry stood at 1.16 at the close of the market yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 212, positioning it in the bottom 14% of all 250+ industries.
Story ContinuesThe 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Tesla, Inc. (TSLA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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