Tesla (TSLA) Outpaces Stock Market Gains: What You Should Know

Tesla (TSLA) closed at $221.31 in the latest trading session, marking a +1.7% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.24%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.73%.

Coming into today, shares of the electric car maker had gained 26.67% in the past month. In that same time, the Auto-Tires-Trucks sector gained 12.5%, while the S&P 500 gained 3.56%.

Investors will be hoping for strength from Tesla as it approaches its next earnings release. On that day, Tesla is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 7.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.39 billion, up 44.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.56 per share and revenue of $99.38 billion, which would represent changes of -12.53% and +22%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Tesla. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 2.87% lower. Tesla currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Tesla has a Forward P/E ratio of 61.14 right now. Its industry sports an average Forward P/E of 10.19, so we one might conclude that Tesla is trading at a premium comparatively.

It is also worth noting that TSLA currently has a PEG ratio of 2.48. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.18 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Related Quotes