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Tesla (TSLA) Rises As Market Takes a Dip: Key Facts

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In the latest market close, Tesla (TSLA - Free Report) reached $202.15, with a +1.21% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.06%, and the technology-dominated Nasdaq saw a decrease of 0.55%.

The electric car maker's shares have seen an increase of 4.25% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 11.99% and outstripping the S&P 500's gain of 3.98%.

Analysts and investors alike will be keeping a close eye on the performance of Tesla in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.67, marking a 21.18% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $25.8 billion, up 10.58% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.16 per share and a revenue of $111.96 billion, demonstrating changes of +1.28% and +15.69%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 9.36% fall in the Zacks Consensus EPS estimate. Right now, Tesla possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Tesla is currently being traded at a Forward P/E ratio of 63.29. This indicates a premium in contrast to its industry's Forward P/E of 13.78.

Also, we should mention that TSLA has a PEG ratio of 2.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Domestic industry had an average PEG ratio of 1.75 as trading concluded yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 40% of all 250+ industries.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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