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

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Nikola (NKLA - Free Report) closed the most recent trading day at $5.39, moving -0.55% from the previous trading session. This move lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.18%.

Prior to today's trading, shares of the pioneer in zero-emission trucks had lost 20.64% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 1.4% and the S&P 500's loss of 1.14% in that time.

Investors will be hoping for strength from Nikola as it approaches its next earnings release. In that report, analysts expect Nikola to post earnings of -$0.39 per share. This would mark a year-over-year decline of 77.27%.

Investors might also notice recent changes to analyst estimates for Nikola. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 currently has 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 84, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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