9/19/2023 0 Comments Buy shinedown attention attentionNo investment decision can be efficient without considering a stock's valuation. The company topped consensus revenue estimates just once over this period. The company beat consensus EPS estimates in each of the trailing four quarters. EPS of $0.85 for the same period compares with $1.07 a year ago.Ĭompared to the Zacks Consensus Estimate of $23.59 billion, the reported revenues represent a surprise of -1.11%. Tesla reported revenues of $23.33 billion in the last reported quarter, representing a year-over-year change of +24.4%. Last Reported Results and Surprise History The $99.41 billion and $124.89 billion estimates for the current and next fiscal years indicate changes of +22% and +25.6%, respectively. In the case of Tesla, the consensus sales estimate of $24.4 billion for the current quarter points to a year-over-year change of +44.1%. Therefore, knowing a company's potential revenue growth is crucial. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:Įven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Tesla is rated Zacks Rank #3 (Hold). Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Over the past month, the estimate has changed -6.1%. Over the last 30 days, this estimate has changed -8%.įor the next fiscal year, the consensus earnings estimate of $4.80 indicates a change of +32.5% from what Tesla is expected to report a year ago. The Zacks Consensus Estimate has changed -11.1% over the last 30 days.įor the current fiscal year, the consensus earnings estimate of $3.62 points to a change of -11.1% from the prior year. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.įor the current quarter, Tesla is expected to post earnings of $0.84 per share, indicating a change of +10.5% from the year-ago quarter. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. And if earnings estimates go up for a company, the fair value for its stock goes up. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. The key question now is: What could be the stock's future direction?Īlthough media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. During this period, the Zacks Automotive - Domestic industry, which Tesla falls in, has gained 17.1%. Over the past month, shares of this electric car maker have returned -8.1%, compared to the Zacks S&P 500 composite's +1.2% change. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Tesla ( TSLA Quick Quote TSLA - Free Report) has recently been on 's list of the most searched stocks.
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