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

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The latest trading session saw Tesla (TSLA - Free Report) ending at $252.08, denoting a -0.56% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.45%.

Investors will be eagerly watching for the performance of Tesla in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.73, reflecting a 38.66% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $25.8 billion, indicating a 6.09% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.16 per share and a revenue of $97.54 billion, representing changes of -22.36% and +19.74%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Tesla. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 2.9% lower. Tesla presently features a Zacks Rank of #4 (Sell).

In terms of valuation, Tesla is currently trading at a Forward P/E ratio of 80.16. Its industry sports an average Forward P/E of 10.09, so one might conclude that Tesla is trading at a premium comparatively.

One should further note that TSLA currently holds a PEG ratio of 4.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.09.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 139, this industry ranks in the bottom 45% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TSLA in the coming trading sessions, be sure to utilize Zacks.com.


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