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Tesla (TSLA) Gains As Market Dips: What You Should Know

Zacks Equity Research

Tesla (TSLA) closed at $221.86 in the latest trading session, marking a +1.02% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 0.24%.

Prior to today's trading, shares of the electric car maker had gained 12.34% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 5.44% and the S&P 500's gain of 4.13% 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 -$0.70 per share. This would mark year-over-year growth of 77.12%. Meanwhile, our latest consensus estimate is calling for revenue of $6.36 billion, up 59% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.32 per share and revenue of $25.74 billion, which would represent changes of +0.75% and +19.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TSLA. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSLA is holding a Zacks Rank of #3 (Hold) right now.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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.


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