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Nikola (NKLA) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Nikola (NKLA - Free Report) closed at $11.08, marking a -0.63% move from the previous day. This change lagged the S&P 500's 0.3% gain on the day.

Coming into today, shares of the pioneer in zero-emission trucks had gained 0.81% in the past month. In that same time, the Auto-Tires-Trucks sector gained 7.57%, while the S&P 500 gained 4.28%.

NKLA will be looking to display strength as it nears its next earnings release, which is expected to be November 4, 2021. In that report, analysts expect NKLA to post earnings of -$0.26 per share. This would mark year-over-year growth of 16.13%.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.88 per share and revenue of $4.63 million, which would represent changes of -41.94% and +4768.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NKLA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NKLA is holding a Zacks Rank of #2 (Buy) right now.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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