2013 has been an incredible year for the automotive industry,
but it has been particularly outstanding for newcomer
Tesla Motors (
. The electric car manufacturer has made a name for itself thanks
to solid sales and earnings that crushed estimates, while the
cool factor of its vehicles have also helped the firm to gain
These factors have allowed TSLA's stock price to surge this
year, as strong results and optimism over electric car demand in
the future pushed the stock up to new heights. In fact, TSLA
shares have added about 250% since the start of the year, and
over 340% in the trailing one year period, making the company one
of the hottest stocks in the market, and a favorite pick among
Given this incredible surge, many are likely wondering if the
run can continue for TSLA heading into the end of the year. If
you look at analyst expectations for the company though, there is
plenty of reason to believe that TSLA can keep this streak alive
and put up some more solid gains.
TSLA Estimates in Focus
Analysts remain extremely bullish on the company and we have
seen some estimate revisions higher in the past few weeks. This
has helped to push the current year consensus from a loss of 77
cents a share 30 days ago, to its current level of a loss of 60
cents a share today.
Current quarter and next quarter estimates have also risen
over the past thirty days too, suggesting that analysts like the
firm's prospects in the short term as well.
This move higher in the estimates picture also helps to push
the Earnings ESP for the current quarter up to 16.67%. So, the
firm could be poised to beat estimates this quarter, at least
when looking at this metric.
Growth Rates Still Incredible
Beyond this favorable estimate picture, it is also worth
noting that growth levels for TSLA are still quite impressive.
The company is expected to see growth of 81% for the current
year, and an astounding 173% for the next year period.
This is especially incredible when you consider where the
company was, and where the firm is expected to go in the future.
The year ago EPS for the company was $-.68/share and current
projections for the 2014 year call for earnings of $0.50/share.
Clearly, the firm is on the right track and is well on its way to
becoming a formidable player in the automotive market.
This soaring estimate picture and strong growth outlook has
helped TSLA to earn a Zacks Rank #1 (Strong Buy), suggesting that
the company will outperform other stocks in the near future. If
that wasn't enough, the stock also has a Zacks Recommendation of
'Outperform', meaning that the long-term future for TSLA is quite
bright as well.
It is also worth noting that the firm is in great company, as
the broad automotive industry is coming back strong. In fact, the
automotive-domestic Zacks Industry is currently Ranked in the top
10%, so there are definitely some industry tailwinds too.
Given these factors, it looks like Tesla, even at its current
levels, may still be a great candidate for a portfolio. There are
not only positive industry trends behind the firm, but a variety
of company specific points-such as strong growth rates and
increased optimism from analysts-which suggest that there is
still time to get in on this amazing growth story.
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