Tesla (TSLA) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Tesla (TSLA) closed at $267.47, marking a -0.75% move from the previous day. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.12%.

Prior to today's trading, shares of the electric car maker had lost 12.47% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 2% and the S&P 500's gain of 2.24% in that time.

Investors will be hoping for strength from TSLA as it approaches its next earnings release. In that report, analysts expect TSLA to post earnings of $0.76 per share. This would mark year-over-year growth of 122.69%. Our most recent consensus estimate is calling for quarterly revenue of $6.43 billion, up 88.7% from the year-ago period.

TSLA's full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $28.47 billion. These results would represent year-over-year changes of +570.68% and +32.67%, respectively.

Any recent changes to analyst estimates for TSLA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 13.62% lower. TSLA currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TSLA currently has a Forward P/E ratio of 43.07. This valuation marks a premium compared to its industry's average Forward P/E of 10.33.

Also, we should mention that TSLA has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TSLA's industry had an average PEG ratio of 1.11 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 23, putting it in the top 10% 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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