The most recent trading session ended with Tesla (TSLA) standing at $454.13, reflecting a -1.76% shift from the previouse trading day’s closing. This change lagged the S&P 500’s daily loss of 0.04%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Coming into today, shares of the electric car maker had gained 38.87% in the past month. In that same time, the Auto-Tires-Trucks sector gained 20.36%, while the S&P 500 gained 1.05%.
Investors will be eagerly watching for the performance of Tesla in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.77, reflecting an 8.45% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $27.95 billion, indicating a 11.06% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.47 per share and a revenue of $100.02 billion, representing changes of -20.83% and +3.36%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tesla. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 remained stagnant within the past month. Tesla is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, Tesla is at present trading with a Forward P/E ratio of 187.32. Its industry sports an average Forward P/E of 11.65, so one might conclude that Tesla is trading at a premium comparatively.
It is also worth noting that TSLA currently has a PEG ratio of 9.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Automotive – Domestic industry held an average PEG ratio of 1.75.
