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Tesla (TSLA) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Tesla (TSLA) closed at $191.81, marking a +0.74% move from the previous day. This move outpaced the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.

Heading into today, shares of the electric car maker had lost 3.29% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 4.19% and lagging the S&P 500's gain of 0.25% 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 $0.86 per share. This would mark a year-over-year decline of 19.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.57 billion, up 25.68% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.85 per share and revenue of $101.37 billion. These totals would mark changes of -5.41% and +24.44%, respectively, from last year.

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It is also important to note the recent changes to analyst estimates for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Tesla currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Tesla currently has a Forward P/E ratio of 49.52. This valuation marks a premium compared to its industry's average Forward P/E of 10.63.

We can also see that TSLA currently has a PEG ratio of 2.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Tesla, Inc. (TSLA) : Free Stock Analysis Report

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Zacks Investment Research