Yahoo Finance Here's Why Tesla (TSLA) Gained But Lagged the Market Today
Tesla (TSLA) closed the latest trading day at $228.21, indicating a +0.9% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.07%. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 2.17%.
Heading into today, shares of the electric car maker had gained 8.82% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 7.16% and the S&P 500's gain of 2.92% in that time.
The upcoming earnings release of Tesla will be of great interest to investors. The company is forecasted to report an EPS of $0.59, showcasing a 10.61% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $25.73 billion, reflecting a 10.18% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.28 per share and revenue of $98.88 billion, indicating changes of -26.92% and +2.17%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tesla. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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.
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 remained unchanged. Tesla is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Tesla currently has a Forward P/E ratio of 99.23. This valuation marks a premium compared to its industry's average Forward P/E of 12.54.
We can additionally observe that TSLA currently boasts a PEG ratio of 4.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.37.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 39% of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Tesla, Inc. (TSLA) : Free Stock Analysis Report
