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

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In the latest trading session, Tesla (TSLA) closed at $1,049.61, marking a +1.75% move from the previous day. This move outpaced the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 4.81%.

Coming into today, shares of the electric car maker had gained 12.55% in the past month. In that same time, the Auto-Tires-Trucks sector gained 7.23%, while the S&P 500 gained 0.64%.

Wall Street will be looking for positivity from Tesla as it approaches its next earnings report date. This is expected to be January 26, 2022. In that report, analysts expect Tesla to post earnings of $2.02 per share. This would mark year-over-year growth of 152.5%. Our most recent consensus estimate is calling for quarterly revenue of $15.93 billion, up 48.25% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Tesla. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.45% higher. Tesla is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Tesla is currently trading at a Forward P/E ratio of 125.77. Its industry sports an average Forward P/E of 13.55, so we one might conclude that Tesla is trading at a premium comparatively.

Investors should also note that TSLA has a PEG ratio of 3.28 right now. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.

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


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