Several growth companies have been under pressure due to the impact of macro headwinds, including steep borrowing costs and high inflation. The Federal Reserve’s upcoming interest rate cut is expected to drive growth stocks higher, as these stocks tend to perform well in a low-interest rate environment. With this backdrop in mind, we used TipRanks’ Stock Comparison Tool to place Tesla (TSLA), Advanced Micro Devices (AMD), and Palantir (PLTR) against each other to pick the best growth stock, according to Wall Street analysts.
Tesla (NASDAQ:TSLA)
Shares of electric vehicle (EV) maker Tesla have advanced 5% over the past month but are still down about 9% year-to-date. Slowing EV demand in key markets, rising competition, and the impact of price cuts on the company’s margins have weighed on investor sentiment on Tesla stock.
Tesla’s automotive revenue declined 7% in the second quarter, reflecting lower deliveries amid macro pressures and intense rivalry in the EV market. Moreover, the company’s adjusted earnings per share (EPS) plunged 43% to $0.52, reflecting continued margin pressures.
All eyes are on the company’s third-quarter deliveries, which could be a major catalyst for the stock. Further, the Robotaxi event expected to be held in October could also help in improving investor sentiment about Tesla stock.
What Is the Target Price for Tesla Stock?
Recently, Wolfe Research analyst Emmanuel Rosner assumed coverage of Tesla with a Hold rating. Rosner feels that the fundamental setup for the EV maker seems constructive over the next few months, with second-half deliveries tracking up 12% compared to the first half of 2024. He explained that this growth is driven by improved demand in China and the rest of the world.
Rosner also sees tailwinds to the company’s auto gross margins due to a reduction in material costs, lower Cybertruck losses, and an improvement in fixed cost leverage that could more than offset the impact of price cuts.
Overall, Wall Street has a Hold consensus rating on Tesla stock based on 12 Buys, 16 Holds, and eight Sells. The average…
..
