Tesla (TSLA) Gains But Lags Market: What You Should Know

Tesla (TSLA) closed the most recent trading day at $1,516.80, moving +1.32% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.34%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 0.94%.

Coming into today, shares of the electric car maker had gained 51.08% in the past month. In that same time, the Auto-Tires-Trucks sector gained 15.38%, while the S&P 500 gained 3.92%.

Wall Street will be looking for positivity from TSLA as it approaches its next earnings report date. This is expected to be July 22, 2020. On that day, TSLA is projected to report earnings of -$0.63 per share, which would represent year-over-year growth of 43.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.98 billion, down 21.55% from the year-ago period.

TSLA's full-year Zacks Consensus Estimates are calling for earnings of $4.97 per share and revenue of $26.87 billion. These results would represent year-over-year changes of +3723.08% and +9.34%, respectively.

It is also important to note the recent changes to analyst estimates for TSLA. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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, the Zacks Consensus EPS estimate has moved 47.37% lower. TSLA currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TSLA currently has a Forward P/E ratio of 301.52. This represents a premium compared to its industry's average Forward P/E of 26.37.

Also, we should mention that TSLA has a PEG ratio of 7.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TSLA's industry had an average PEG ratio of 3.67 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 186, which puts it in the bottom 27% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tesla, Inc. (TSLA): Free Stock Analysis Report
To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.