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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/composite TSLA +7.95%  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/composite AAPL +0.0000% , Amazon /zigman2/quotes/210331248/composite AMZN +0.40% and Google parent company Alphabet /zigman2/quotes/205453964/composite GOOG +1.85%   /zigman2/quotes/202490156/composite GOOGL +1.94% . The ranking was also higher than the momo (momentum) crowd’s favorite semiconductor stocks such as AMD /zigman2/quotes/208144392/composite AMD -0.46% and Nvidia /zigman2/quotes/200467500/composite NVDA +0.86% .

• 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/composite
US : U.S.: Nasdaq
$ 1,208.66
+89.03 +7.95%
Volume: 17.25M
July 2, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$224.18 billion
Rev. per Employee
$439,627
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 364.11
+0.0000 +0.0000%
Volume: 28.51M
July 2, 2020 4:00p
P/E Ratio
28.54
Dividend Yield
0.90%
Market Cap
$1578.17 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,890.30
+11.60 +0.40%
Volume: 6.59M
July 2, 2020 4:00p
P/E Ratio
138.07
Dividend Yield
N/A
Market Cap
$1441.61 billion
Rev. per Employee
$359,671
loading...
/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 1,464.70
+26.66 +1.85%
Volume: 1.86M
July 2, 2020 4:00p
P/E Ratio
29.55
Dividend Yield
N/A
Market Cap
$1001.65 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 1,469.93
+27.93 +1.94%
Volume: 2.86M
July 2, 2020 4:00p
P/E Ratio
29.66
Dividend Yield
N/A
Market Cap
$1001.65 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/208144392/composite
US : U.S.: Nasdaq
$ 52.34
-0.24 -0.46%
Volume: 29.08M
July 2, 2020 4:00p
P/E Ratio
126.30
Dividend Yield
N/A
Market Cap
$61.30 billion
Rev. per Employee
$641,089
loading...
/zigman2/quotes/200467500/composite
US : U.S.: Nasdaq
$ 384.49
+3.29 +0.86%
Volume: 9.10M
July 2, 2020 4:00p
P/E Ratio
71.80
Dividend Yield
0.17%
Market Cap
$236.46 billion
Rev. per Employee
$882,428
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