Investing.com.- Any good investor worth his salt will know that it makes sense to enter a stock position when there is room for improvement in its price. Having first-hand information about the current price of a stock and what the market thinks is an appropriate price for that stock is key to reducing risk and achieving higher returns.
Tesla Fair Value
One of the stocks that has been the focus of most recent investor attention these days is Tesla, has been the recent focus of high investor attention is Tesla (TSLA (NASDAQ:TSLA)), which tends to experience rapid movements in its share price whenever it grabs news headlines (which is often). We wanted to find out today if Tesla's current price is suitable for a potential investment, so we asked Jesse Cohen, senior analyst at Investing.com.
Using data provided by InvestingPro, we obtained Tesla's fair value. It currently stands at $184.58, compared to its current price of $176.88, which represents a potential upside of close to 4% (data for which a total of 12 investment models have been used). Elon Musk announced last Friday that the electric vehicle giant will unveil its robotaxi on August 8, news that is generating a lot of interest in the stock.
"Fair Value indicates that the company could stage a rebound. In my opinion, it is a stock that we should keep on our radar. I think all the news is already contained in its price, and a fall would not be justified. And analysts, in general, are optimistic," says Cohen.
Analysts expect Tesla to be profitable by 2024, according to our Protips (filtered data that can help us get an overall idea of the state of the company).
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Benefits of InvestingPro’s Fair Value Feature
- Avoid Buying Overvalued Stocks: InvestingPro’s Fair Value analysis helps identify overpriced stocks to avoid purchasing them at inflated values.
- Time the Market: The Fair Value feature assists with timing stock purchases to capitalize on periods of undervaluation.
- Make Informed Decisions: Fair Value insights allow investors to make data-driven decisions about optimal times to buy stocks.
- Improve Returns: Buying stocks at appropriate valuations can improve overall portfolio returns over time.
- Lower Risk: Purchasing stocks near the Fair Value reduces downside risk compared to buying overpriced stocks.
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