NASDAQ:TSLA—A High-Growth Stock Gearing Up for Its Next Upward Move.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether TESLA INC (NASDAQ:TSLA) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but TESLA INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Unpacking NASDAQ:TSLA's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:TSLA has earned a 9 for growth:

• TSLA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.33%, which is quite impressive.
• TSLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 289.91% yearly.
• Looking at the last year, TSLA shows a very strong growth in Revenue. The Revenue has grown by 39.99%.
• Measured over the past years, TSLA shows a very strong growth in Revenue. The Revenue has been growing by 47.27% on average per year.
• TSLA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.47% yearly.
• Based on estimates for the next years, TSLA will show a very strong growth in Revenue. The Revenue will grow by 22.52% on average per year.

What does the Health looks like for NASDAQ:TSLA

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:TSLA was assigned a score of 8 for health:

• An Altman-Z score of 14.34 indicates that TSLA is not in any danger for bankruptcy at the moment.
• TSLA's Altman-Z score of 14.34 is amongst the best of the industry. TSLA outperforms 91.89% of its industry peers.
• TSLA has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
• The Debt to FCF ratio of TSLA (0.38) is better than 100.00% of its industry peers.
• A Debt/Equity ratio of 0.02 indicates that TSLA is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.02, TSLA is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
• TSLA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:TSLA has achieved a 8:

• TSLA has a better Return On Assets (13.51%) than 97.30% of its industry peers.
• With an excellent Return On Equity value of 23.93%, TSLA belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
• TSLA has a Return On Invested Capital of 18.20%. This is amongst the best in the industry. TSLA outperforms 97.30% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for TSLA is above the industry average of 9.81%.
• The 3 year average ROIC (13.76%) for TSLA is below the current ROIC(18.20%), indicating increased profibility in the last year.
• The Profit Margin of TSLA (13.01%) is better than 94.59% of its industry peers.
• The Operating Margin of TSLA (13.49%) is better than 94.59% of its industry peers.
• TSLA's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 21.49%, TSLA belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
• TSLA's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NASDAQ:TSLA?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:TSLA has a 8 as its setup rating:

TSLA has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 273.93. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 233.47, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of TSLA for a complete fundamental analysis.

Our latest full technical report of TSLA contains the most current technical analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.