Tesla (TSLA) Gains But Lags Market: What You Should Know

Tesla TSLA

In the latest trading session, Tesla (TSLA) closed at $738.85, marking a +0.9% move from the previous day. This change lagged the S&P 500’s 1.11% gain on the day.

Coming into today, shares of the electric car maker had gained 12.62% in the past month. In that same time, the Auto-Tires-Trucks sector lost 0.46%, while the S&P 500 gained 4.72%.

Wall Street will be looking for positivity from TSLA as it approaches its next earnings report date. This is expected to be April 26, 2021. On that day, TSLA is projected to report earnings of $0.79 per share, which would represent year-over-year growth of 216%. Meanwhile, our latest consensus estimate is calling for revenue of $9.92 billion, up 65.76% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.27 per share and revenue of $48.7 billion. These totals would mark changes of +90.63% and +54.44%, respectively, from last year.

Any recent changes to analyst estimates for TSLA should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.06% higher. TSLA is currently a Zacks Rank #3 (Hold).

Investors should also note TSLA’s current valuation metrics, including its Forward P/E ratio of 178.35. This valuation marks a premium compared to its industry’s average Forward P/E of 17.52.

Also, we should mention that TSLA has a PEG ratio of 5.17. 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 2.42 as of yesterday’s close.

The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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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