In the latest close session, Tesla (TSLA) was up +1.91% at $434.21. The stock’s change was more than the S&P 500’s daily gain of 0.44%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 0.7%.
Shares of the electric car maker have appreciated by 25.31% over the course of the past month, outperforming the Auto-Tires-Trucks sector’s gain of 17.06%, and the S&P 500’s gain of 4.03%.
The upcoming earnings release of Tesla will be of great interest to investors. The company’s earnings per share (EPS) are projected to be $0.48, reflecting a 33.33% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $25.12 billion, indicating a 0.23% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.66 per share and a revenue of $92.65 billion, signifying shifts of -31.4% and -5.16%, respectively, from the last year.
Any recent changes to analyst estimates for Tesla should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.35% decrease. Tesla presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Tesla is presently being traded at a Forward P/E ratio of 257.03. For comparison, its industry has an average Forward P/E of 14.79, which means Tesla is trading at a premium to the group.
We can additionally observe that TSLA currently boasts a PEG ratio of 10.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The average PEG ratio for the Automotive – Domestic industry stood at 2.48 at the close of the market yesterday.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 34% echelons of all 250+ industries.
