In the latest trading session, Tesla (TSLA) closed at $394.76, marking a -3.19% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
Prior to today's trading, shares of the electric car maker had gained 0.33% lagged the Auto-Tires-Trucks sector's gain of 5% and the S&P 500's gain of 4.28%.
The investment community will be paying close attention to the earnings performance of Tesla in its upcoming release. The company is slated to reveal its earnings on July 22, 2026. The company is predicted to post an EPS of $0.47, indicating a 17.5% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $24.73 billion, up 9.95% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.11 per share and a revenue of $102.02 billion, signifying shifts of +27.11% and +7.59%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Tesla. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.51% higher. Tesla is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Tesla is holding a Forward P/E ratio of 193.31. This denotes a premium relative to the industry average Forward P/E of 17.31.
One should further note that TSLA currently holds a PEG ratio of 9.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Domestic stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Tesla, Inc. (TSLA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).