Tesla (TSLA) Outpaces Stock Market Gains: What You Should Know
Tesla (TSLA) closed at $617.69 in the latest trading session, marking a +1.28% move from the prior day. This move outpaced the S&P 500's daily gain of 0.18%.
Prior to today's trading, shares of the electric car maker had gained 3.42% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 7.54% and outpaced the S&P 500's gain of 2.43% in that time.
Investors will be hoping for strength from TSLA as it approaches its next earnings release. On that day, TSLA is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 102.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.38 billion, up 88.57% from the year-ago period.
TSLA's full-year Zacks Consensus Estimates are calling for earnings of $4.32 per share and revenue of $49.39 billion. These results would represent year-over-year changes of +92.86% and +56.61%, respectively.
Investors should also note any recent changes to analyst estimates for TSLA. These recent revisions tend to reflect the evolving nature of short-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 remained stagnant. TSLA currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, TSLA is holding a Forward P/E ratio of 141.08. Its industry sports an average Forward P/E of 15.62, so we one might conclude that TSLA is trading at a premium comparatively.
Meanwhile, TSLA's PEG ratio is currently 3.76. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow TSLA in the coming trading sessions, be sure to utilize Zacks.com.
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