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The most recent trading session was ended for Tesla (TSLA) at $172.82, reflecting -1.62% change from the previous trading day’s closing price. This change lagged the S&P 500’s daily gain of 0.32%. At the same time, the Dow Jones Industrial Average rose 0.68%, and the tech-heavy Nasdaq rose 0.2%.
Shares of the electric vehicle maker have fallen 9.81% over the past month, lagging the Auto Tires & Trucks sector’s rise of 0.96% and the S&P 500’s rise of 5.11%.
The investment community will be paying close attention to Tesla’s earnings performance in upcoming releases. The company’s earnings per share (EPS) are expected to be $0.64, reflecting a decrease of 24.71% from the year-ago period. Also, our latest consensus estimate shows that his revenue is expected to be $25.4 billion, up 8.89% from the year-ago period.
For the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $3.06 per share and revenue of $110.98 billion, which would represent changes of -1.92% and +14.68%, respectively, from the prior year. .
Additionally, investors should note recent revisions to analyst estimates for Tesla. These revisions help illustrate the ever-changing nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research suggests that these estimate changes have a direct relationship with future stock performance. To benefit from this, we have created the Zacks Rank, a proprietary model that combines these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 ranked stocks averaging +25% since 1988. generates an annual return of The Zacks Consensus EPS estimate has moved 3.91% lower within the past month. Tesla currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Tesla is currently trading at a Forward P/E ratio of 57.44. Its industry has an average Forward P/E of 14.93, so one might conclude that Tesla is trading at a relative premium.
Additionally, we note that TSLA currently has a PEG ratio of 3.17. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account a company’s expected earnings growth rate. As of yesterday’s market close, the average PEG ratio for the Automotive Domestic industry was 1.89.
The Automobiles – Domestic industry is part of the Automotive Tires – Trucks sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of over 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% of industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, on Zacks.com.
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