'Fast Money' Recap: Tesla in No-Man's Land

NEW YORK (TheStreet) -- The Nasdaq was able to close in positive territory while the broader markets closed slightly lower on Tuesday.

Tesla Motors (TSLA) beat on top- and bottom-line expectations and on nearly all of its previously guided metrics. However, the stock traded down roughly 10% in after-hours trading.

On CNBC's "Fast Money" TV show, Guy Adami, managing director at stockmonster.com, said Tesla had a really good quarter, but the selloff puts the stock in "no-man's land." 

Tim Seymour, managing partner of Triogem Asset Management, said that while the valuation is insanely high, the focus should be on revenue and deliveries, not on margins.

Mike Khouw, managing director and primary strategist at DASH Financial, said that it's essentially impossible for the company to grow into its current valuation. 

Steve Grasso of Stuart Frankel said he would be a buyer at $140, if the level holds as support.

Ben Kallo, senior research analyst at R.W. Baird, was a guest on the show and said Baird downgraded the stock to hold because the valuation is too high. He added there is too much optimism from investors with too-high expectations. When Tesla provides 2014 guidance it might give the stock the boost that it needs to go higher, he concluded. 

Zillow (Z) beat on the top and bottom lines. Adami said investors could continue to own the stock with a stop-loss at $80. Seymour said the stock is completely overvalued and questioned how many homebuyers are going through its platform. 

Abercrombie & Fitch (ANF) fell sharply due to its preliminary earnings results. Karen Finerman, president of Metropolitan Capital Advisors, said the company seems to have lost its way and there's no reason for investors to step in and buy right now. 

Hain Celestial Group (HAIN) beat on the top and bottom lines and Adami said the stock still has upside momentum. 

Dana Telsey, CEO and chief research officer of Telsey Advisory Group, was a guest on the show and said falling energy prices should help consumers during the holidays. When unleaded gasoline falls below $3.25 per gallon, she said, middle-class consumers' extra spending money starts to become more apparent, with Wal-Mart (WMT), Target (TGT), Dollar General (DG) and Dollar Tree (DLTR) benefiting the most. She added the upper class will continue to spend, regardless of energy prices. 

Seymour said casual dining could also get a boost from lower energy costs but youth unemployment will continue hurting teen retail stocks.

Grasso said Deckers Outdoor (DECK) could still have 10% upside. 

Hertz Global Holdings (HTZ) beat on earnings but had a disappointing conference call. Finerman said the company overestimated its fleet value and backed off its 2015 earnings per share guidance. She advised investors not to rush into the stock, which could break $20. 


CVS Caremark (CVS) was the first company on the show's "Pops & Drops" segment. Finerman called it a "steady earner" and said the story is still intact. 

Orbitz Worldwide (OWW) plunged 20% following earnings. Mike Khouw said he prefers Priceline.com (PCLN).

Tenet Healthcare (THC) dropped 9%, and Adami said investors should get long at $40. 

AOL (AOL) jumped 8% on its earnings results. Adami said there's likely more room to the upside. Grasso said he wants to wait for a pullback and said investors could use Tuesday's low as an entry. 

Royal Bank of Scotland (RBS) fell 2%. Seymour said he would avoid the stock. 

Rebecca Patterson, CIO of the Bessemer Trust, was a guest on the show. She remains underweight emerging markets. She said Janet Yellen, expected to become the next head of the Federal Reserve, will have her confirmation hearing on Nov. 14. A dovish outing would be good for emerging markets, while a hawkish one would be bearish. Specifically, Patterson likes Mexico; tapering fears could create a buying opportunity. 

Finerman is still long Sotheby's (BID), calling it the best way to play the art market. 

MercadoLibre (MELI) fell on disappointing earnings results. Seymour likes the name but investors should wait for the stock to consolidate before getting long. 

Adami said investors could stay long Facebook (FB) with a stop-loss near $47.50.

For their final trades, Khouw is bearish on Green Mountain Coffee Roasters (GMCR) via long calendar put spreads, Seymour said to go long Melco Crown Entertainment (MPEL) and Finerman said to avoid HTZ. Grasso is a buyer of Bank of America (BAC) and Adami said to buy Z.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow TheStreet.com on Twitter and become a fan on Facebook.

X

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

More from Jim Cramer

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home