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

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if TESLA INC (NASDAQ:TSLA) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted TESLA INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:TSLA, the assigned 8 reflects its growth potential:

• TSLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 289.91% yearly.
• The Revenue has grown by 28.13% in the past year. This is a very strong growth!
• TSLA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 47.27% yearly.
• TSLA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.21% yearly.
• The Revenue is expected to grow by 20.76% on average over the next years. This is a very strong growth

Assessing Health for NASDAQ:TSLA

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:TSLA has achieved a 8 out of 10:

• An Altman-Z score of 13.56 indicates that TSLA is not in any danger for bankruptcy at the moment.
• TSLA's Altman-Z score of 13.56 is amongst the best of the industry. TSLA outperforms 94.87% of its industry peers.
• TSLA has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
• TSLA has a Debt to FCF ratio of 1.18. This is amongst the best in the industry. TSLA outperforms 97.44% of its industry peers.
• TSLA has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.05, TSLA is doing good in the industry, outperforming 76.92% 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.

Assessing Profitability for NASDAQ:TSLA

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:TSLA scores a 8 out of 10:

• With an excellent Return On Assets value of 11.49%, TSLA belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
• With an excellent Return On Equity value of 20.19%, TSLA belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 14.45%, TSLA belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
• TSLA had an Average Return On Invested Capital over the past 3 years of 13.69%. This is above the industry average of 9.28%.
• The last Return On Invested Capital (14.45%) for TSLA is above the 3 year average (13.69%), which is a sign of increasing profitability.
• TSLA has a Profit Margin of 11.25%. This is amongst the best in the industry. TSLA outperforms 94.87% of its industry peers.
• TSLA has a Operating Margin of 11.22%. This is amongst the best in the industry. TSLA outperforms 92.31% of its industry peers.
• In the last couple of years the Operating Margin of TSLA has grown nicely.
• With an excellent Gross Margin value of 19.81%, TSLA belongs to the best of the industry, outperforming 82.05% of the companies in the same industry.
• TSLA's Gross Margin has improved in the last couple of years.

Looking at the Setup

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 an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. We notice that large players showed an interest for TSLA in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of TSLA

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.