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

In the latest trading session, Tesla (TSLA) closed at $735.11, marking a +0.73% move from the previous day. This move outpaced the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.95%.

Coming into today, shares of the electric car maker had gained 13.71% in the past month. In that same time, the Auto-Tires-Trucks sector gained 7.14%, while the S&P 500 gained 0.17%.

Investors will be hoping for strength from TSLA as it approaches its next earnings release. The company is expected to report EPS of $0.83, up 93.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.92 billion, up 34.3% from the year-ago period.

Investors should also note any recent changes to analyst estimates for TSLA. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.71% higher within the past month. TSLA is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that TSLA has a Forward P/E ratio of 204.27 right now. For comparison, its industry has an average Forward P/E of 14.88, which means TSLA is trading at a premium to the group.

Meanwhile, TSLA's PEG ratio is currently 6.21. 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 2.15 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 121, which puts it in the top 48% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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