In the latest trading session, Tesla (TSLA) closed at $699.21, marking a -0.54% move from the previous day. This change was narrower than the S&P 500’s 0.92% loss on the day. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the electric car maker had gained 8.62% over the past month, outpacing the Auto-Tires-Trucks sector’s loss of 2.67% and the S&P 500’s loss of 1% in that time.
Wall Street will be looking for positivity from Tesla as it approaches its next earnings report date. This is expected to be July 20, 2022. The company is expected to report EPS of $1.91, up 31.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.49 billion, up 46.22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.10 per share and revenue of $84.32 billion, which would represent changes of +63.72% and +56.66%, respectively, from the prior year.
Any recent changes to analyst estimates for Tesla should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% lower. Tesla is currently a Zacks Rank #3 (Hold).
Investors should also note Tesla’s current valuation metrics, including its Forward P/E ratio of 63.32. This represents a premium compared to its industry’s average Forward P/E of 10.84.
We can also see that TSLA currently has a PEG ratio of 2.11. 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 0.98 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 136, putting it in the bottom 47% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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