In the latest trading session, Tesla (TSLA) closed at $184.51, marking a -0.3% move from the previous day. This change lagged the S&P 500’s daily gain of 0.1%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 2.19%.
Prior to today’s trading, shares of the electric car maker had gained 6.7% over the past month. This has outpaced the Auto-Tires-Trucks sector’s gain of 6.1% and the S&P 500’s gain of 3.13% in that time.
Investors will be hoping for strength from Tesla as it approaches its next earnings release, which is expected to be April 19, 2023. In that report, analysts expect Tesla to post earnings of $0.85 per share. This would mark a year-over-year decline of 20.56%. Meanwhile, our latest consensus estimate is calling for revenue of $23.56 billion, up 25.62% from the prior-year quarter.
TSLA’s full-year Zacks Consensus Estimates are calling for earnings of $3.84 per share and revenue of $101.83 billion. These results would represent year-over-year changes of -5.65% and +25%, respectively.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.1% lower. Tesla is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Tesla has a Forward P/E ratio of 48.26 right now. Its industry sports an average Forward P/E of 10.27, so we one might conclude that Tesla is trading at a premium comparatively.
We can also see that TSLA currently has a PEG ratio of 1.97. 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. The Automotive – Domestic industry currently had an average PEG ratio of 1.43 as of yesterday’s close.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 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% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Tesla, Inc. (TSLA) : Free Stock Analysis Report