In the latest trading session, Tesla (TSLA) closed at $396.36, marking a -1.72% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.12%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq lost 0.23%.
The electric car maker's stock has dropped by 12.9% in the past month, falling short of the Auto-Tires-Trucks sector's loss of 10.27% and the S&P 500's loss of 3.45%.
The investment community will be closely monitoring the performance of Tesla in its forthcoming earnings report. On that day, Tesla is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 7.04%. Meanwhile, our latest consensus estimate is calling for revenue of $27.77 billion, up 10.35% from the prior-year quarter.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has shifted 0.62% downward. At present, Tesla boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Tesla is presently trading at a Forward P/E ratio of 122.53. For comparison, its industry has an average Forward P/E of 13.93, which means Tesla is trading at a premium to the group.
We can additionally observe that TSLA currently boasts a PEG ratio of 5.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.62.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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