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Tesla (TSLA) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw Tesla (TSLA - Free Report) ending at $244.54, denoting a +1.54% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.97%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.45%.

The electric car maker's stock has climbed by 11.36% in the past month, exceeding the Auto-Tires-Trucks sector's gain of 5.28% and the S&P 500's gain of 5.41%.

Investors will be eagerly watching for the performance of Tesla in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 23, 2024. In that report, analysts expect Tesla to post earnings of $0.57 per share. This would mark a year-over-year decline of 13.64%. At the same time, our most recent consensus estimate is projecting a revenue of $25.62 billion, reflecting a 9.74% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.25 per share and a revenue of $98.78 billion, representing changes of -27.88% and +2.08%, respectively, from the prior year.

Any recent changes to analyst estimates for Tesla should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 0.45% higher within the past month. Tesla is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Tesla currently has a Forward P/E ratio of 107.04. For comparison, its industry has an average Forward P/E of 12.06, which means Tesla is trading at a premium to the group.

It's also important to note that TSLA currently trades at a PEG ratio of 5.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.41 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 35% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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