Tesla (TSLA) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Tesla (TSLA) closed at $118.85, marking a -0.77% move from the previous day. This change lagged the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Coming into today, shares of the electric car maker had lost 28.63% in the past month. In that same time, the Auto-Tires-Trucks sector lost 15.43%, while the S&P 500 lost 0.94%.
Wall Street will be looking for positivity from Tesla as it approaches its next earnings report date. This is expected to be January 25, 2023. On that day, Tesla is projected to report earnings of $1.14 per share, which would represent year-over-year growth of 34.12%. Our most recent consensus estimate is calling for quarterly revenue of $24.84 billion, up 40.19% from the year-ago period.
Any recent changes to analyst estimates for Tesla 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 6% lower within the past month. Tesla is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Tesla is holding a Forward P/E ratio of 24.45. Its industry sports an average Forward P/E of 11.71, 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 0.87. 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. TSLA's industry had an average PEG ratio of 1.08 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 150, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Tesla, Inc. (TSLA) : Free Stock Analysis Report
