Tesla (TSLA) Surpasses Stock Market Returns: Essential Details to Consider

Tesla (TSLA) Surpasses Stock Market Returns: Essential Details to Consider

Tesla TSLA closed at $179.83 in the latest trading session, marking a +1.22% move from the prior day. The stock’s performance was ahead of the S&P 500’s daily gain of 0.86%. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.

The the stock of electric car maker has fallen by 11.05% in the past month, lagging the Auto-Tires-Trucks sector’s loss of 0.17% and the S&P 500’s gain of 2.84%.

Market participants will be closely following the financial results of Tesla in its upcoming release. The company’s upcoming EPS is projected at $0.63, signifying a 25.88% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $25.14 billion, indicating a 7.75% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.05 per share and a revenue of $110.73 billion, demonstrating changes of -2.24% and +14.42%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Tesla. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there’s been a 4.35% fall in the Zacks Consensus EPS estimate. Tesla is currently a Zacks Rank #3 (Hold).

Investors should also note Tesla’s current valuation metrics, including its Forward P/E ratio of 58.27. This denotes a premium relative to the industry’s average Forward P/E of 15.12.

We can additionally observe that TSLA currently boasts a PEG ratio of 3.22. 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 1.92 at the close of the market yesterday.

The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.

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