Tesla (TSLA) closed at $435.79 in the latest trading session, marking a -1.43% move from the prior day. This move lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.21%.
The stock of electric car maker has risen by 15.85% in the past month, leading the Auto-Tires-Trucks sector's gain of 12.01% and the S&P 500's gain of 6.04%.
Market participants will be closely following the financial results of Tesla in its upcoming release. It is anticipated that the company will report an EPS of $0.45, marking a 12.5% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $24.24 billion, reflecting a 7.75% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.99 per share and revenue of $100.58 billion. These totals would mark changes of +19.88% and +6.06%, respectively, from last year.
Any recent changes to analyst estimates for Tesla should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 3.63% lower. Tesla is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Tesla has a Forward P/E ratio of 222.09 right now. This valuation marks a premium compared to its industry average Forward P/E of 20.08.
Investors should also note that TSLA has a PEG ratio of 10.55 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. As of the close of trade yesterday, the Automotive - Domestic industry held an average PEG ratio of 0.92.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 22% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Tesla, Inc. (TSLA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).