Why NASDAQ:TSLA Is a Standout High-Growth Stock in a Consolidation Phase.

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.

Exploring NASDAQ:TSLA's Growth

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:

• Measured over the past years, TSLA shows a very strong growth in Earnings Per Share. The EPS has been growing by 61.63% on average per year.
• The Revenue has grown by 18.80% in the past year. This is quite good.
• Measured over the past years, TSLA shows a very strong growth in Revenue. The Revenue has been growing by 35.15% on average per year.
• TSLA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.90% yearly.
• The Revenue is expected to grow by 21.22% on average over the next years. This is a very strong growth

Health Analysis for NASDAQ:TSLA

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:TSLA, the assigned 6 reflects its health status:

• An Altman-Z score of 9.22 indicates that TSLA is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 9.22, TSLA belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
• The Debt to FCF ratio of TSLA is 1.20, which is an excellent value as it means it would take TSLA, only 1.20 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.20, TSLA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• 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 has a Current ratio of 1.73. This is in the better half of the industry: TSLA outperforms 61.54% of its industry peers.

A Closer Look at 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 9 out of 10:

• The Return On Assets of TSLA (14.07%) is better than 97.44% of its industry peers.
• The Return On Equity of TSLA (23.95%) is better than 97.44% of its industry peers.
• The Return On Invested Capital of TSLA (9.02%) is better than 94.87% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for TSLA is significantly above the industry average of 8.18%.
• The 3 year average ROIC (13.59%) for TSLA is well above the current ROIC(9.02%). The reason for the recent decline needs to be investigated.
• Looking at the Profit Margin, with a value of 15.50%, TSLA belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
• In the last couple of years the Profit Margin of TSLA has grown nicely.
• Looking at the Operating Margin, with a value of 9.19%, TSLA belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
• In the last couple of years the Operating Margin of TSLA has grown nicely.
• TSLA has a better Gross Margin (18.25%) than 76.92% of its industry peers.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:TSLA is 8:

Although the technical rating is bad, TSLA does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 166.01, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.