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Nikola (NKLA) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Nikola (NKLA - Free Report) closed at $7.93, marking a -1.98% move from the previous day. This change lagged the S&P 500's daily loss of 1.81%. Elsewhere, the Dow lost 1.47%, while the tech-heavy Nasdaq lost 0.51%.

Prior to today's trading, shares of the pioneer in zero-emission trucks had lost 22.51% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 9.12% and the S&P 500's loss of 1.84% in that time.

Investors will be hoping for strength from Nikola as it approaches its next earnings release, which is expected to be February 24, 2022. The company is expected to report EPS of -$0.29, down 70.59% from the prior-year quarter.

Any recent changes to analyst estimates for Nikola should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nikola is currently sporting a Zacks Rank of #3 (Hold).

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% 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.

To follow NKLA in the coming trading sessions, be sure to utilize Zacks.com.


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