Advertisement
Canada markets open in 51 minutes

  • S&P/TSX

    21,656.05
    +13.18 (+0.06%)
     

  • S&P 500

    5,022.21
    -29.20 (-0.58%)
     

  • DOW

    37,753.31
    -45.66 (-0.12%)
     

  • CAD/USD

    0.7265
    +0.0001 (+0.02%)
     

  • CRUDE OIL

    82.35
    -0.34 (-0.41%)
     

  • Bitcoin CAD

    85,202.36
    -501.90 (-0.59%)
     

  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

  • GOLD FUTURES

    2,399.20
    +10.80 (+0.45%)
     

  • RUSSELL 2000

    1,947.95
    -19.53 (-0.99%)
     

  • 10-Yr Bond

    4.6020
    +0.0170 (+0.37%)
     

  • NASDAQ futures

    17,686.00
    +27.50 (+0.16%)
     

  • VOLATILITY

    17.99
    -0.22 (-1.21%)
     

  • FTSE

    7,859.76
    +11.77 (+0.15%)
     

  • NIKKEI 225

    38,079.70
    +117.90 (+0.31%)
     

  • CAD/EUR

    0.6812
    +0.0010 (+0.15%)
     
MARKETS LIVE BLOG:

STOCK FUTURES RISE AS TECHS REVIVE, WITH NETFLIX EARNINGS ON TAP

U.S. bond yields continue to slip away from recent five-month highs, easing pressure on stocks

Falling Earnings Estimates Signal Weakness Ahead for Tesla (TSLA)

Zacks Equity Research

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is Tesla, Inc. TSLA, which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in TSLA.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen two estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from a loss of $1.14 a share a month ago to its current level of a loss of $1.32.

Also, for the current quarter, Tesla has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 70 cents a share from a loss of 64 cents over the past 30 days.

ADVERTISEMENT

The stock also has seen some pretty dismal trading lately, as the share price has dropped 9.8% in the past month.

Tesla, Inc. Price and Consensus

Tesla, Inc. Price and Consensus
Tesla, Inc. Price and Consensus

Tesla, Inc. price-consensus-chart | Tesla, Inc. Quote

So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.

If you are still interested in the Automotive – Domestic industry, you may instead consider a better-ranked stock – Autobytel Inc. AUTO. The stock currently holds a Zacks Rank #2 (Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Will you retire a millionaire?

One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”

Click to get it free >>


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
 
Autobytel Inc. (AUTO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research