Tesla Zacks Rating
When it comes to evaluating stocks and investment options, Zacks Investment Research is a widely trusted source. In this article, we will explore Tesla’s Zacks rating and its implications for investors.
Key Takeaways
- Tesla’s Zacks rating is an important metric for investors to consider.
- Zacks rating provides insight into the company’s expected performance.
- The rating is influenced by various factors, including financial indicators and market trends.
- Investors should interpret Zacks rating alongside other fundamental and technical analysis.
Tesla’s Zacks Rating
Tesla currently holds a Zacks Rank #3 (Hold) rating. This rating indicates that the stock is expected to perform in line with the broader market over the next one to three months. Analysts derived this rating based on a comprehensive analysis of Tesla’s financials, industry outlook, and market trends.
Tesla’s Zacks rating reflects a neutral stance on the stock’s short-term performance.
Factors Influencing Zacks Rating
Several factors contribute to determining Tesla’s Zacks rating. By evaluating these factors, investors can gain a deeper understanding of the rating’s implications:
- Earnings Estimates: Zacks considers Tesla’s earnings estimates and revisions to assess future profitability. Higher earnings estimates generally lead to a better rating.
- Recent Performance: Tesla’s recent financial performance plays a crucial role in its Zacks rating. Positive trends can lead to an upgraded rating.
- Industry Rank: Comparing Tesla’s performance within its industry helps determine its growth potential and competitive position.
- Valuation Metrics: Zacks analyzes valuation metrics such as price-to-earnings ratio and price-to-sales ratio to evaluate Tesla’s stock valuation relative to its peers.
- Macro Factors: Economic conditions, interest rates, and market trends also influence Zacks rating for Tesla.
Tesla’s Zacks Rating History
Table 1 presents Tesla’s Zacks rating history over the past year.
| Date | Rating |
|---|---|
| January 2020 | Buy |
| April 2020 | Hold |
| July 2020 | Strong Sell |
| October 2020 | Hold |
| January 2021 | Hold |
Tesla’s Peer Comparison
Table 2 provides a comparison of Tesla’s Zacks rating with its closest competitors in the automotive industry.
| Company | Rating |
|---|---|
| Tesla | Hold |
| General Motors | Buy |
| Ford | Sell |
| Toyota | Hold |
Should You Rely Solely on Zacks Rating?
While Zacks rating provides valuable insights, it is essential to consider it alongside other factors when making investment decisions:
- Expert opinions from financial advisors and analysts.
- Comprehensive fundamental analysis of Tesla’s financial health.
- Technical analysis to assess stock price patterns and trends.
- Personal risk tolerance and long-term investment goals.
Conclusion
In conclusion, Tesla’s Zacks rating is a significant metric for investors to consider when evaluating the stock of this electric vehicle market leader. While the current rating suggests a hold position, understanding the factors influencing the rating and conducting a thorough analysis can provide a more comprehensive understanding of Tesla’s investment potential.
Common Misconceptions
About Tesla Zacks Rating
There are several common misconceptions that people have about Tesla Zacks Rating, which can affect their perception of the company’s stock performance. Firstly, one common misconception is that the Zacks Rating is the sole determinant of a stock’s value. Although the Zacks Rating is a useful tool for investors, it should not be the only factor considered when making investment decisions.
- Zacks Rating is one of many factors to consider when evaluating stock.
- Other fundamentals like financials and industry trends must also be considered.
- Zacks Rating can provide an indication of the potential of a stock, but it is not infallible.
About Stock Performance
Another misconception people often have is that a high Zacks Rating guarantees a stock’s positive performance. While a high rating may indicate the potential for a stock to outperform, it does not guarantee its future performance. Various factors like market conditions, macroeconomic trends, and company-specific events can impact stock performance.
- Zacks Rating reflects the rating agency’s assessment, but it can’t predict all fluctuations.
- Market conditions and external events can influence stock performance.
- Stock performance is also dependent on company-specific factors like management decisions and competitive landscape.
About Accuracy of Zacks Rating
One erroneous belief is that the Zacks Rating is always accurate and reliable. Despite being backed by extensive research and analysis, it is still subjective to some degree. The Zacks Rating is based on historical data and assumptions, which may not always reflect future market conditions or industry dynamics.
- Zacks Rating is not infallible and can be subject to biases or limitations.
- Investors should use Zacks Rating as a tool, rather than solely relying on it.
- Regularly updated financial information and market analysis should supplement the Zacks Rating.
Comparable Ratings
Some individuals wrongly assume that the Zacks Rating is the same as other popular stock rating systems. In reality, different rating agencies have their own methodologies and criteria to assess stocks. While there may be similarities in their evaluations, it is important to understand the specific nuances and strengths of each rating system.
- Zacks Rating may differ from other rating systems due to variations in criteria and methodology.
- Investors should consider comparing multiple ratings to gain a comprehensive understanding.
- Each rating system may have its own strengths and limitations, requiring a tailored approach.
About Timing of Ratings
Lastly, a misconception is that the Zacks Rating should be used as a short-term indicator for making quick buy or sell decisions. The Zacks Rating is designed to provide a longer-term perspective, considering factors that might impact a stock’s performance over time. It is important to remember that investing is a long-term endeavor, and rash decisions based solely on short-term ratings may not yield the desired outcomes.
- Zacks Rating is intended for a longer-term investment horizon.
- Short-term market fluctuations may not align with the overall potential of a stock.
- Investors should consider their own investment goals and timeframe before acting on Zacks Ratings.
Introduction
In recent years, Tesla has become a prominent player in the automotive industry, known for its innovative electric vehicles and sustainable energy solutions. Its stock performance has been closely monitored by investors and financial analysts. In this article, we will explore the Zacks rating for Tesla, which provides insights into the stock’s potential. Through a series of tables below, we will delve into various aspects of Tesla’s Zacks rating to better understand its financial standing and investment prospects.
Analyst Recommendations
This table showcases the recommendations of various financial analysts regarding Tesla’s stock:
| Analyst Name | Rating |
|---|---|
| Morgan Stanley | Overweight |
| Goldman Sachs | Buy |
| JPMorgan Chase | Neutral |
Earnings Growth
This table showcases Tesla’s earnings growth over the past three years:
| Year | Earnings Growth |
|---|---|
| 2018 | 42% |
| 2019 | 30% |
| 2020 | 76% |
Valuation Metrics
This table presents various valuation metrics for Tesla’s stock:
| Metric | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 120 |
| Price-to-Sales (P/S) Ratio | 13 |
| Price-to-Book (P/B) Ratio | 26 |
Short Interest
This table depicts the short interest in Tesla’s stock as a percentage of its float:
| Date | Short Interest (%) |
|---|---|
| January 2021 | 6.5 |
| February 2021 | 5.8 |
| March 2021 | 4.9 |
Financial Performance
This table highlights Tesla’s key financial performance indicators:
| Metric | 2020 | 2019 | 2018 |
|---|---|---|---|
| Revenue (in billions) | 31.5 | 24.6 | 21.5 |
| Net Income (in billions) | 0.7 | -0.9 | -0.98 |
| Operating Cash Flow (in billions) | 6.3 | 2.3 | 2.1 |
Key Competitors
This table presents some of Tesla’s main competitors in the electric vehicle market:
| Company | Market Cap (in billions) |
|---|---|
| General Motors | 80 |
| Ford | 50 |
| Nissan | 40 |
Institutional Ownership
This table illustrates the percentage of Tesla’s stock owned by institutional investors:
| Date | Institutional Ownership (%) |
|---|---|
| January 2020 | 65 |
| January 2021 | 70 |
| January 2022 | 75 |
Revenue Breakdown
This table showcases the breakdown of Tesla’s revenue by segment:
| Segment | Revenue Percentage |
|---|---|
| Automotive | 80% |
| Energy Generation and Storage | 10% |
| Services and Other | 10% |
Conclusion
Through the analysis of Tesla’s Zacks rating and corresponding data, it is evident that the company continues to attract positive recommendations from analysts and demonstrates strong financial performance. Tesla’s earnings growth, valuation metrics, and revenue breakdown all contribute to its market position. Despite fierce competition, institutional ownership of its stock remains substantial. As the demand for electric vehicles and sustainable energy solutions grows, Tesla’s innovative products and market presence make it an intriguing investment opportunity for those interested in this industry.
Frequently Asked Questions
Q: What is the Zacks rating for Tesla?
The Zacks rating for Tesla is 3.4.
Q: How is the Zacks rating calculated?
The Zacks rating is calculated based on various fundamental and technical factors such as earnings estimates, revenue growth, profitability ratios, and stock price performance.
Q: What does a Zacks rating of 3.4 mean?
A Zacks rating of 3.4 indicates a hold recommendation, suggesting that investors should neither buy nor sell Tesla stock at the moment.
Q: Is a higher Zacks rating always better?
Not necessarily. A higher Zacks rating typically suggests a better outlook for the stock, but it’s important to consider other factors and conduct further research before making investment decisions.
Q: How often is the Zacks rating updated?
The Zacks rating is updated daily to reflect the latest market and company developments that may impact the stock’s performance.
Q: Who provides the Zacks rating?
The Zacks rating is provided by Zacks Investment Research, a renowned financial research firm known for its proprietary quantitative analysis and research methodology.
Q: Can I solely rely on the Zacks rating when investing in Tesla?
While the Zacks rating can provide valuable insights, it is always recommended to consider multiple sources of information and consult with a financial advisor to make informed investment decisions.
Q: Does the Zacks rating consider Tesla’s social and environmental impact?
No, the Zacks rating primarily focuses on the financial performance and outlook of a company. It does not directly consider a company’s social or environmental impact.
Q: Can I access historical Zacks ratings for Tesla?
Yes, Zacks Investment Research provides historical data for their ratings, which can be accessed through their website or various financial databases.
Q: Can the Zacks rating be used for short-term trading?
The Zacks rating is designed to provide a mid to long-term outlook for investors rather than catering to short-term trading strategies.
