Should You Buy Tesla on Uber Rumor?
2015-08-17 14:44:47.854 GMT
With rumors of Tesla Motors starting its own "Uber-like" car service the
company's stock surged this morning.
By Jon Kostakopoulos
NEW YORK (TheStreet) -- With rumors of Tesla Motors starting its own
"Uber-like" car service, the company's stock surgedthis morning.
Morgan Stanley analyst, Adam Jonas, increased Tesla's priced target to $465
from $280. This is mainly due to "Tesla Mobility, an app-based, on-demand
mobility service." Jonas also raised speculation after asking Tesla CEO Elon
Musk aboutthe company cutting out a middle-man and going directly to consumers
with a ride-sharing service during an earnings call. Musk declined to answer.
Is Jonas right? Should you buy? Here is the Tesla stock recommendation,
according to TheStreet Ratings,TheStreet's proprietary ratings tool.
TheStreet Ratings projects a stock's total return potential over a 12-month
period including both price appreciation and dividends. Based on 32 major data
points, TheStreet Ratings uses a quantitative approach to rating over 4,300
stocks to predict return potential for the next year. The model is both
objective, using elements such as volatility of past operating revenues,
financial strength, and company cash flows, and subjective, including expected
equities market returns, future interest rates, implied industry outlook and
forecasted company earnings.
Buying an S&P 500 stock that TheStreet Ratings rated a buy yielded a 16.56%
return in 2014, beating the S&P 500 Total Return Index by 304 basis points.
Buying a Russell 2000 stock that TheStreet Ratings rated a buy yielded a 9.5%
return in 2014, beating the Russell 2000 index, including dividends
reinvested, by 460 basis points last year.
Check out which stocks made the list. And when you're done, be sure to read
about which pharmaceutical stocks you should buy now. Year-to-date returns are
based onAugust 17, 2015 prices as of 10:45am.
TSLA data by
Tesla Motors, Inc. TSLA
Rating: Hold, C-
Market Cap: $32.6 billion
Year-to-date return: 12.76%
Tesla Motors, Inc. designs, develops, manufactures, and sells electric
vehicles, electric vehicle powertrain components, and stationary energy
storage systems in the United States, China, Norway, and internationally.
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have
impacted our rating are mixed - some indicating strength, some showing
weaknesses, with little evidence to justify the expectation of either a
positive or negative performance for this stock relative to most other stocks.
Among the primary strengths of the company is its robust revenue growth -- not
just in the most recent periods but in previous quarters as well. At the same
time, however, we also find weaknesses including deteriorating net income,
generally higher debt management risk and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
* The revenue growth greatly exceeded the industry average of 7.3%. Since
the same quarter one year prior, revenues rose by 24.1%. This growth in
revenue does not appear to have trickled down to the company's bottom
line, displayed by a decline in earnings per share.
* TESLA MOTORS INC has experienced a steep decline in earnings per share in
the most recent quarter in comparison to its performance from the same
quarter a year ago. The company has reported a trend of declining earnings
per share over the past year. However, the consensus estimate suggests
that this trend should reverse in the coming year. During the past fiscal
year, TESLA MOTORS INC reported poor results of -$2.36 versus -$0.71 in
the prior year. This year, the market expects an improvement in earnings
(-$0.66 versus -$2.36).
* The share price of TESLA MOTORS INC has not done very well: it is down
6.84% and has underperformed the S&P 500, in part reflecting the company's
sharply declining earnings per share when compared to the year-earlier
quarter. The fact that the stock is now selling for less than others in
its industry in relation to its current earnings is not reason enough to
justify a buy rating at this time.
* The gross profit margin for TESLA MOTORS INC is currently lower than what
is desirable, coming in at 31.91%. It has decreased from the same quarter
the previous year. Along with this, the net profit margin of -19.29% is
significantly below that of the industry average.
* Net operating cash flow has significantly decreased to -$159.52 million or
4356.99% when compared to the same quarter last year. In addition, when
comparing to the industry average, the firm's growth rate is much lower.
* You can view the full analysis from the report here: TSLA Ratings Report
This article was originally published by TheStreet. -0- Aug/17/2015 14:44 GMT
2015-08-17 14:44:47.854 GMT
With rumors of Tesla Motors starting its own "Uber-like" car service the
company's stock surged this morning.
By Jon Kostakopoulos
NEW YORK (TheStreet) -- With rumors of Tesla Motors starting its own
"Uber-like" car service, the company's stock surgedthis morning.
Morgan Stanley analyst, Adam Jonas, increased Tesla's priced target to $465
from $280. This is mainly due to "Tesla Mobility, an app-based, on-demand
mobility service." Jonas also raised speculation after asking Tesla CEO Elon
Musk aboutthe company cutting out a middle-man and going directly to consumers
with a ride-sharing service during an earnings call. Musk declined to answer.
Is Jonas right? Should you buy? Here is the Tesla stock recommendation,
according to TheStreet Ratings,TheStreet's proprietary ratings tool.
TheStreet Ratings projects a stock's total return potential over a 12-month
period including both price appreciation and dividends. Based on 32 major data
points, TheStreet Ratings uses a quantitative approach to rating over 4,300
stocks to predict return potential for the next year. The model is both
objective, using elements such as volatility of past operating revenues,
financial strength, and company cash flows, and subjective, including expected
equities market returns, future interest rates, implied industry outlook and
forecasted company earnings.
Buying an S&P 500 stock that TheStreet Ratings rated a buy yielded a 16.56%
return in 2014, beating the S&P 500 Total Return Index by 304 basis points.
Buying a Russell 2000 stock that TheStreet Ratings rated a buy yielded a 9.5%
return in 2014, beating the Russell 2000 index, including dividends
reinvested, by 460 basis points last year.
Check out which stocks made the list. And when you're done, be sure to read
about which pharmaceutical stocks you should buy now. Year-to-date returns are
based onAugust 17, 2015 prices as of 10:45am.
TSLA data by
Tesla Motors, Inc. TSLA
Rating: Hold, C-
Market Cap: $32.6 billion
Year-to-date return: 12.76%
Tesla Motors, Inc. designs, develops, manufactures, and sells electric
vehicles, electric vehicle powertrain components, and stationary energy
storage systems in the United States, China, Norway, and internationally.
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have
impacted our rating are mixed - some indicating strength, some showing
weaknesses, with little evidence to justify the expectation of either a
positive or negative performance for this stock relative to most other stocks.
Among the primary strengths of the company is its robust revenue growth -- not
just in the most recent periods but in previous quarters as well. At the same
time, however, we also find weaknesses including deteriorating net income,
generally higher debt management risk and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
* The revenue growth greatly exceeded the industry average of 7.3%. Since
the same quarter one year prior, revenues rose by 24.1%. This growth in
revenue does not appear to have trickled down to the company's bottom
line, displayed by a decline in earnings per share.
* TESLA MOTORS INC has experienced a steep decline in earnings per share in
the most recent quarter in comparison to its performance from the same
quarter a year ago. The company has reported a trend of declining earnings
per share over the past year. However, the consensus estimate suggests
that this trend should reverse in the coming year. During the past fiscal
year, TESLA MOTORS INC reported poor results of -$2.36 versus -$0.71 in
the prior year. This year, the market expects an improvement in earnings
(-$0.66 versus -$2.36).
* The share price of TESLA MOTORS INC has not done very well: it is down
6.84% and has underperformed the S&P 500, in part reflecting the company's
sharply declining earnings per share when compared to the year-earlier
quarter. The fact that the stock is now selling for less than others in
its industry in relation to its current earnings is not reason enough to
justify a buy rating at this time.
* The gross profit margin for TESLA MOTORS INC is currently lower than what
is desirable, coming in at 31.91%. It has decreased from the same quarter
the previous year. Along with this, the net profit margin of -19.29% is
significantly below that of the industry average.
* Net operating cash flow has significantly decreased to -$159.52 million or
4356.99% when compared to the same quarter last year. In addition, when
comparing to the industry average, the firm's growth rate is much lower.
* You can view the full analysis from the report here: TSLA Ratings Report
This article was originally published by TheStreet. -0- Aug/17/2015 14:44 GMT