In the latest trading session, Tesla (TSLA) closed at $1,057.26, marking a +1.1% move from the previous day. This change outpaced the S&P 500’s 0.43% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the electric car maker had gained 21.75% in the past month. In that same time, the Auto-Tires-Trucks sector gained 11.8%, while the S&P 500 gained 3.69%.
Tesla will be looking to display strength as it nears its next earnings release, which is expected to be April 20, 2022. The company is expected to report EPS of $2.12, up 127.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.13 billion, up 64.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.88 per share and revenue of $83 billion, which would represent changes of +45.72% and +54.2%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.9% higher. Tesla is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Tesla has a Forward P/E ratio of 105.89 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 11.2.
We can also see that TSLA currently has a PEG ratio of 2.73. 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. The Automotive – Domestic was holding an average PEG ratio of 0.99 at yesterday’s closing price.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.