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

Tesla (TSLA) closed the most recent trading day at $665.99, moving +0.35% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Coming into today, shares of the electric car maker had gained 16.93% in the past month. In that same time, the Auto-Tires-Trucks sector gained 4.34%, while the S&P 500 gained 2.78%.

Investors will be hoping for strength from TSLA as it approaches its next earnings release. The company is expected to report EPS of $0.80, up 86.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.92 billion, up 34.3% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.24 per share and revenue of $30.99 billion. These totals would mark changes of +7366.67% and +26.09%, respectively, from last year.

Any recent changes to analyst estimates for TSLA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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 5.15% higher. TSLA is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, TSLA is currently trading at a Forward P/E ratio of 296.05. This represents a premium compared to its industry's average Forward P/E of 29.79.

It is also worth noting that TSLA currently has a PEG ratio of 9. 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 4.51 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 18, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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