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Feb. 6, 2020, 1:56 p.m. EST

This is how Tesla ranks compared with other popular technology stocks

When adjusted for risk, Tesla’s stock ranks low, but that ought to change over time

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By Nigam Arora


Courtesy of Keith, Million Mile Secrets

Who doesn’t want to own a stock that doubles in a month?

Tesla /zigman2/quotes/203558040/lastsale TSLA +4.36%  did just that, soaring to almost $1,000.

Still, it has not been an easy stock to analyze. Investors face a twin set of difficulties. First, many smart people are divided into two camps — permabulls and permabears. Most longtime investors have learned from experience that it is dangerous to follow either. Second, the stock has a history of big moves owing to the mechanics of the stock market, such as short squeezes and money flows.

What if there were a method that, just before the big move this week, ranked Tesla as the No. 1 technology stock? Well, there is such a method. A more important question for investors is: What is this method saying about Tesla’s stock now?

Let’s explore the topic with the help of a chart.

Chart

Please click here for an annotated chart of Tesla.

Note the following:

• The chart shows a vicious short squeeze in Tesla stock.

To understand the ebb and flow of new “shorts,” please click here for an annotated intraday chart.

To understand different legs of the short squeeze on a longer time frame, please click here for an annotated day chart.

For the sake of transparency, both of the charts were previously published and no changes have been made. To learn more, please see “A perfect combination for Tesla’s stock gains — future fantasies, short selling and FOMO.”

• The chart shows when the ZYX Change Method ranked Tesla No. 1 on a non-risk-adjusted basis. At that time, Tesla stock was trading at $479. The ranking was higher than popular technology stocks such as Apple /zigman2/quotes/202934861/lastsale AAPL -0.20% , Amazon /zigman2/quotes/210331248/lastsale AMZN -0.72% and Google parent company Alphabet /zigman2/quotes/205453964/lastsale GOOG +1.39%   /zigman2/quotes/202490156/lastsale GOOGL +1.36% . The ranking was also higher than the momo (momentum) crowd’s favorite semiconductor stocks such as AMD /zigman2/quotes/208144392/lastsale AMD -4.97% and Nvidia /zigman2/quotes/200467500/lastsale NVDA -0.75% .

• Subsequent to the original call, the ranking was published on MarketWatch. Please see “Something rare is happening among popular technology stocks.”

• The chart shows that in less than a month, Tesla stock doubled at its peak before pulling back.

/zigman2/quotes/203558040/lastsale
US : U.S.: Nasdaq
$ 524.00
+21.87 +4.36%
Volume: 17.77M
March 31, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$92.59 billion
Rev. per Employee
$439,627
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/zigman2/quotes/202934861/lastsale
US : U.S.: Nasdaq
$ 254.29
-0.52 -0.20%
Volume: 49.25M
March 31, 2020 4:00p
P/E Ratio
20.08
Dividend Yield
1.21%
Market Cap
$1114.92 billion
Rev. per Employee
$1.98M
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/zigman2/quotes/210331248/lastsale
US : U.S.: Nasdaq
$ 1,949.72
-14.23 -0.72%
Volume: 5.12M
March 31, 2020 4:00p
P/E Ratio
84.71
Dividend Yield
N/A
Market Cap
$977.67 billion
Rev. per Employee
$359,671
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/zigman2/quotes/205453964/lastsale
US : U.S.: Nasdaq
$ 1,162.81
+15.99 +1.39%
Volume: 2.49M
March 31, 2020 4:00p
P/E Ratio
23.64
Dividend Yield
N/A
Market Cap
$835.52 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/202490156/lastsale
US : U.S.: Nasdaq
$ 1,161.95
+15.64 +1.36%
Volume: 3.26M
March 31, 2020 4:00p
P/E Ratio
23.63
Dividend Yield
N/A
Market Cap
$835.52 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/208144392/lastsale
US : U.S.: Nasdaq
$ 45.48
-2.38 -4.97%
Volume: 83.48M
March 31, 2020 4:00p
P/E Ratio
153.29
Dividend Yield
N/A
Market Cap
$56.04 billion
Rev. per Employee
$641,089
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/zigman2/quotes/200467500/lastsale
US : U.S.: Nasdaq
$ 263.60
-1.99 -0.75%
Volume: 23.75M
March 31, 2020 4:00p
P/E Ratio
58.32
Dividend Yield
0.24%
Market Cap
$162.54 billion
Rev. per Employee
$882,428
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