Tesla (TSLA) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Tesla (TSLA) closed at $266.38, marking a -0.49% move from the previous day. This move lagged the S&P 500's daily loss of 0.06%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the electric car maker had lost 7.68% in the past month. In that same time, the Auto-Tires-Trucks sector gained 4.17%, while the S&P 500 gained 4.3%.
Wall Street will be looking for positivity from TSLA as it approaches its next earnings report date. This is expected to be April 24, 2019. On that day, TSLA is projected to report earnings of $0.71 per share, which would represent year-over-year growth of 121.19%. Meanwhile, our latest consensus estimate is calling for revenue of $6.23 billion, up 82.86% from the prior-year quarter.
TSLA's full-year Zacks Consensus Estimates are calling for earnings of $5.92 per share and revenue of $27.29 billion. These results would represent year-over-year changes of +545.11% and +27.17%, respectively.
It is also important to note the recent changes to analyst estimates for TSLA. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 22.86% lower. TSLA is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, TSLA is currently trading at a Forward P/E ratio of 45.22. Its industry sports an average Forward P/E of 10.97, so we one might conclude that TSLA is trading at a premium comparatively.
Meanwhile, TSLA's PEG ratio is currently 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TSLA's industry had an average PEG ratio of 1.3 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 220, putting it in the bottom 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.