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Tesla (TSLA) Dips More Than Broader Markets: What You Should Know

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Tesla (TSLA) closed at $685.47 in the latest trading session, marking a -1.79% move from the prior day. This move lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.

Prior to today's trading, shares of the electric car maker had lost 7.95% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 6.1% and was narrower than the S&P 500's loss of 7.99% in that time.

Wall Street will be looking for positivity from Tesla as it approaches its next earnings report date. The company is expected to report EPS of $2.02, up 39.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.28 billion, up 52.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.36 per share and revenue of $85.83 billion, which would represent changes of +67.55% and +59.48%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Tesla. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower 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 61.47. For comparison, its industry has an average Forward P/E of 10.96, which means Tesla is trading at a premium to the group.

Meanwhile, TSLA's PEG ratio is currently 2.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Domestic industry currently had an average PEG ratio of 1.02 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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