Tesla’s stock ended the latest trading session at $170.66, down 1.8% from the previous day’s close. This decline occurred despite the S&P 500 gaining 0.27% and the Nasdaq rising by 0.88%. Meanwhile, the Dow Jones Industrial Average experienced a loss of 0.31%.
Tesla’s performance relative to sector and market
Picture: Tesla in the slumps as seen on the VT Markets app.
In the past month, Tesla’s shares have increased by 1.11%. During the same period, the Auto-Tires-Trucks sector saw a decline of 0.81%, while the S&P 500 climbed by 2.85%. These movements highlight Tesla’s relative strength in its sector but also underline the mixed performance across different market indices.
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Anticipation builds for Tesla’s earnings report
Investors are eagerly anticipating Tesla’s upcoming earnings report. The company is expected to post earnings of $0.60 per share, marking a year-over-year decrease of 34.07%. The expected revenue is $24.91 billion, slightly down by 0.08% from the same quarter last year. For the full year, earnings are forecasted to be $2.47 per share with a revenue of $98.56 billion, reflecting changes of -20.83% and +1.85%, respectively, compared to the previous year.
Tesla’s valuation compared to industry averages
Tesla currently trades with a Forward P/E ratio of 70.48, significantly higher than the industry average of 12.85. This suggests that Tesla is trading at a premium compared to its peers. Additionally, Tesla’s PEG ratio, which considers the company’s expected earnings growth rate, is 3.26. The Automotive – Domestic industry, to which Tesla belongs, has an average PEG ratio of 1.36.
The Automotive – Domestic industry is currently ranked 58th out of over 250 industries, placing it in the top 24%. This high ranking reflects the industry’s overall strength and potential for outperformance. Historically, industries in the top 50% outperform those in the bottom half by a factor of 2 to 1.
While Tesla’s stock has shown resilience in the past month, the upcoming earnings report and revised analyst estimates will play a crucial role in determining its near-term trajectory.
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