Second quarter results from the major automakers will be a highlight of this week’s earnings lineup with Tesla TSLA and General Motors GM set to report on Tuesday, July 23.
Assessing Tesla’s Q2 Performance
Tesla’s stock has been on an impressive rally, reflecting a surge of over +20% in the past month. The company’s announcement of 443,956 EV deliveries in Q2 exceeded most analyst expectations despite a slight decline from the previous year.
GM & Ford in the Spotlight
Both General Motors and Ford witnessed significant momentum leading up to their Q2 reports. Notably, GM reported a 40% spike in EV deliveries to 21,930 vehicles, while Ford saw a 61% increase to 23,957 EV deliveries in Q2.
Valuation Insights
In terms of valuation, General Motors and Ford stand out, trading at low forward earnings multiples of 5.1X and 6.9X, respectively. Both companies hold an “A” Zacks Style Scores grade for Value.
Tesla’s Valuation Contrasted
Tesla’s stock trades at a premium compared to the broader market, with a forward earning multiple of 96.4X. While below its two-year high, it remains above the median during this period, indicating a potential buying opportunity.
Strategic Outlook Ahead of Q2 Reveals Potential
General Motors and Ford carry a Zacks Rank #2 (Buy) going into their Q2 reports. With the growth in their EV segments and attractive P/E ratios, now may be an optimal time for investors to consider positions in these automotive giants.
On the other hand, Tesla’s stock holds a Zacks Rank #3 (Hold) following a significant rally. While long-term investors may still benefit from holding Tesla, the future may present more favorable buying opportunities.