Tesla, Inc. (NASDAQ:TSLA) turned in a $1.75-per-share profit
When a company beats Wall Street analysts’ earnings expectations, its stock price tends to rise.
When Tesla announced third-quarter results last week, it didn’t merely beat analyst expectations — it trounced them. Cable TV tickers flashed the news worldwide. The company’s stock price didn’t simply rise; it soared.
So why was the report such a surprise? Nobody but Tesla’s top executives anticipated the blowout scale of third-quarter profit numbers. Stock analysts on average expected a loss of 95 cents per share, according to FactSet; their forecasts ranged from a $2.90-per-share loss to a 55-cent-per-share gain. Instead, Tesla turned in a $1.75-per-share profit.
In notes to investors afterward, analysts avoided talking about their big miss. And the debate over whether Tesla stock is overvalued or undervalued continued. The better-than-expected results, said Bank of America’s John Murphy, are due to “transitory factors” that likely can’t be sustained. Ben Kallo of Baird, however, said “the flip to profitability in [the] third quarter could be the start of a narrative shift” and push the stock higher.
That stark difference of opinion demonstrates how a consensus average can mislead to the point of uselessness if the range is wide enough.
When the media say a company “beat expectations,” they’re almost always talking about the consensus of a dozen or more analysts. But if the range goes from a loss of $2.90 a share to a gain of 55 cents a share, it’s obvious someone is misinformed or making erroneous assumptions.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 378.58.
The projected lower bound is: 296.68.
The projected closing price is: 337.63.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 79.5421. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 65.64. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 37 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 112.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 14 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 10 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 7.420 at 337.320. Volume was 29% below average (neutral) and Bollinger Bands were 56% wider than normal.
Open High Low Close Volume___
332.540 342.000 329.100 337.320 7,624,348
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 301.53 291.46 311.19
Volatility: 90 92 72
Volume: 13,898,633 10,757,992 9,062,284
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
TESLA INC is currently 8.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 5 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.