In the latest trading session, Tesla (TSLA) closed at $173.44, marking a -0.34% move from the previous day. This change lagged the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.01%.
Prior to today's trading, shares of the electric car maker had lost 2% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 3.42% and lagged the S&P 500's gain of 3.49% in that time.
Wall Street will be looking for positivity from Tesla as it approaches its next earnings report date. The company is expected to report EPS of $1.20, up 41.18% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.54 billion, up 44.16% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.05 per share and revenue of $82.9 billion. These totals would mark changes of +79.2% and +54.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Tesla. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Tesla is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Tesla currently has a Forward P/E ratio of 42.93. Its industry sports an average Forward P/E of 14.7, so we one might conclude that Tesla is trading at a premium comparatively.
It is also worth noting that TSLA currently has a PEG ratio of 1.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic industry currently had an average PEG ratio of 1.33 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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