Tesla (TSLA) closed the most recent trading day at $354.08, moving -5.92% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.
The stock of electric car maker has risen by 17.79% in the past month, leading the Auto-Tires-Trucks sector's gain of 9.62% and the S&P 500's gain of 2.08%.
The investment community will be closely monitoring the performance of Tesla in its forthcoming earnings report. The company's upcoming EPS is projected at $0.47, signifying a 6.00% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $27.96 billion, down 0.5% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.79 per share and a revenue of $105.94 billion, representing changes of +7.83% and +11.71%, respectively, from the prior year.
Any recent changes to analyst estimates for Tesla should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.72% fall in the Zacks Consensus EPS estimate. Currently, Tesla is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Tesla is at present trading with a Forward P/E ratio of 210.04. This valuation marks a premium compared to its industry average Forward P/E of 18.31.
Investors should also note that TSLA has a PEG ratio of 9.3 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 Automotive - Domestic industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 19% of all 250+ industries.
The 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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