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Tesla (TSLA) Gains But Lags Market: What You Should Know

In the latest trading session, Tesla (TSLA) closed at $548.84, marking a +0.62% move from the previous day. The stock lagged the S&P 500's daily gain of 3.41%. Meanwhile, the Dow gained 3.44%, and the Nasdaq, a tech-heavy index, added 2.58%.

Coming into today, shares of the electric car maker had lost 15.48% in the past month. In that same time, the Auto-Tires-Trucks sector lost 15.16%, while the S&P 500 lost 10.46%.

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 $0.18 per share. This would mark year-over-year growth of 106.21%. Our most recent consensus estimate is calling for quarterly revenue of $5.71 billion, up 25.83% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.33 per share and revenue of $27.66 billion, which would represent changes of +3230.77% and +12.56%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TSLA. 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. 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 144.94% lower. TSLA is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TSLA has a Forward P/E ratio of 126.09 right now. Its industry sports an average Forward P/E of 13.77, so we one might conclude that TSLA is trading at a premium comparatively.

Meanwhile, TSLA's PEG ratio is currently 3.45. 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. TSLA's industry had an average PEG ratio of 1.38 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 14% 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.

To follow TSLA in the coming trading sessions, be sure to utilize

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