Technical analysis of the following stock:
- Tesla, Inc. a USA based Company, belongs to a Consumer Cyclical
On Monday, 0.10% shares of Tesla, Inc. (NASDAQ:TSLA) are owned by insiders with -92.59% six-month change in the insider ownership. The insider filler data counts the number of monthly positions over 3 month and 12 month time spans. The stock closed at $193.93 by scoring -1.50%. Short-term as well long term investors always focus on the liquidity of the stocks so for that concern, liquidity measure in recent quarter results of the company was recorded 1.50 as current ratio and on the opponent side the debt to equity ratio was 0.07 and long-term debt to equity ratio also remained 0.04. The stock showed monthly performance of 56.95%. Likewise, the performance for the quarter was recorded as 1.68% and for the year was -35.68%.
Growth in earnings per share is everything. The expected future growth in earnings per share (“EPS”) is an incredibly important factor .in identifying an under-valued stock. The impact of earnings growth is exponential. Over the long run, the price of a stock will generally go up in lock step with its earnings (assuming the P/E ratio is constant). Therefore stocks with higher earnings growth should offer the highest capital gains. And doubling the growth more than doubles the capital gain, due to the compounding effect.
If we consider EPS growth of the company, then the company indicated the following observations:
The company showed 3.62 diluted EPS growth for trailing twelve months. However, YTD EPS growth remained 57.44%.
Tesla, Inc. (NASDAQ:TSLA) exchanged hands 118,420,289 shares versus average trading capacity of 154.85M shares, while its relative trading volume is 1.39. TSLA’s total market worth is $655.98B. The Company has a Return on Assets of 17.30%. The company currently has a Return on Equity of 32.50% and Return on Investment of 26.10%.
Beta is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. The market portfolio of all investable assets has a beta of exactly 1. A beta below 1 can indicate either an investment with lower volatility than the market, or a volatile investment whose price movements are not highly correlated with the market. An example of the first is a treasury bill: the price does not go up or down a lot, so it has a low beta. An example of the second is gold. The price of gold does go up and down a lot, but not in the same direction or at the same time as the market.
A beta greater than one generally means that the asset both is volatile and tends to move up and down with the market. An example is a stock in a big technology company. Negative betas are possible for investments that tend to go down when the market goes up, and vice versa. There are few fundamental investments with comprising and noteworthy negative betas, but some derivatives like put options can have large negative betas.
Why Traders should have a look on beta and why it is important
Beta is important because it measures the risk of an investment that cannot be reduced by diversification. It does not measure the risk of an investment held on a stand-alone basis, but the amount of risk the investment adds to an already-diversified portfolio. In the capital asset pricing model, beta risk is the only kind of risk for which investors should receive an predictable return higher than the risk-free rate of interest.
Why higher-beta is riskier than lower- beta
Higher-beta stocks tend to be more volatile and therefore riskier, but provide the potential for higher returns. Lower-beta stocks pose less risk but generally offer lower returns. Some have challenged this idea, claiming that the data show little relation between beta and potential reward, or even that lower-beta stocks are both less risky and more profitable (contradicting CAPM). In the same way a stock’s beta shows its relation to market shifts, it is also an indicator for required returns on investment (ROI).
Now have a glance on “Beta value” of the stock
TSLA’s Beta value is 2.11.