Tesla (TSLA) Suffers a Larger Drop Than the General Market: Key Insights

Tesla (TSLA) closed at $395.76 in the latest trading session, marking a -2.96% move from the prior day. This move lagged the S&P 500's daily loss of 1.52%. Elsewhere, the Dow saw a downswing of 1.56%, while the tech-heavy Nasdaq depreciated by 1.78%. Heading into today, shares of the electric car maker had lost 4.78% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 6.5% and lagging the S&P 500's loss of 2.25%.Market participants will be closely following the financial results of Tesla in its upcoming release. The company is forecasted to report an EPS of $0.39, showcasing a 44.44% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $22.51 billion, indicating a 16.43% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates project earnings of $2.08 per share and a revenue of $102.71 billion, demonstrating changes of +25.3% and +8.32%, respectively, from the preceding year. Investors might also notice recent changes to analyst estimates for Tesla. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.9% lower within the past month. Right now, Tesla possesses a Zacks Rank of #3 (Hold). Digging into valuation, Tesla currently has a Forward P/E ratio of 196.42. For comparison, its industry has an average Forward P/E of 15.35, which means Tesla is trading at a premium to the group. Meanwhile, TSLA's PEG ratio is currently 8.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Domestic stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices. The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 86, putting it in the top 36% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Zacks.com. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks