Tesla (TSLA) closed the most recent trading day at $705.21, moving -0.43% from the previous trading session. This change lagged the S&P 500’s 0.95% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.23%.
Heading into today, shares of the electric car maker had gained 7.51% over the past month, outpacing the Auto-Tires-Trucks sector’s gain of 3.29% and the S&P 500’s loss of 3.49% in that time.
Tesla will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.07, up 42.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.59 billion, up 55.46% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.36 per share and revenue of $85.77 billion, which would represent changes of +67.55% and +59.36%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Tesla. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.8% higher within the past month. Tesla is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Tesla is currently trading at a Forward P/E ratio of 62.33. This represents a premium compared to its industry’s average Forward P/E of 10.89.
Investors should also note that TSLA has a PEG ratio of 2.08 right now. 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. TSLA’s industry had an average PEG ratio of 1.01 as of yesterday’s close.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.