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Tesla (TSLA) Outpaces Stock Market Gains: What You Should Know

Tesla (TSLA) closed at $225.61 in the latest trading session, marking a +1.76% move from the prior day. This change outpaced the S&P 500's 0.06% gain on the day. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the electric car maker had lost 5.19% in the past month. In that same time, the Auto-Tires-Trucks sector lost 5.62%, while the S&P 500 lost 2.95%.

TSLA will be looking to display strength as it nears its next earnings release. On that day, TSLA is projected to report earnings of -$0.14 per share, which would represent a year-over-year decline of 104.83%. Our most recent consensus estimate is calling for quarterly revenue of $6.61 billion, down 3.18% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.16 per share and revenue of $24.83 billion, which would represent changes of -137.59% and +15.68%, respectively, from the prior year.

Any recent changes to analyst estimates for TSLA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TSLA is holding a Zacks Rank of #4 (Sell) right now.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 44% 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.

Be sure to follow all of these stock-moving metrics, and many 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.