In the latest trading session, Tesla (TSLA) closed at $194.70, marking no change from the previous day. This change was narrower than the S&P 500's daily loss of 0.09%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.22%.
Heading into today, shares of the electric car maker had lost 9.43% over the past month, lagging the Auto-Tires-Trucks sector's loss of 2.55% and the S&P 500's gain of 5.55% in that time.
Tesla will be looking to display strength as it nears its next earnings release. In that report, analysts expect Tesla to post earnings of $1.20 per share. This would mark year-over-year growth of 41.18%. Our most recent consensus estimate is calling for quarterly revenue of $25.54 billion, up 44.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.05 per share and revenue of $82.9 billion. These totals would mark changes of +79.2% and +54.03%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Tesla is currently a Zacks Rank #3 (Hold).
Digging into valuation, Tesla currently has a Forward P/E ratio of 48.03. Its industry sports an average Forward P/E of 14.37, so we one might conclude that Tesla is trading at a premium comparatively.
Also, we should mention that TSLA has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.38 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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