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Rivian Automotive (RIVN) Stock Jumps 11.5%: Will It Continue to Soar?

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Rivian Automotive (RIVN - Free Report) shares soared 11.5% in the last trading session to close at $18.10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.2% loss over the past four weeks.

The firm’s efforts to ramp up production have sparked investors’ confidence. Rivian produced 10,020 vehicles at its manufacturing facility in Normal, IL during the three months ended Dec 31, 2022. The production and delivery numbers witnessed an uptick from the third-quarter 2022 levels.

This a manufacturer of motor vehicles and passenger cars is expected to post quarterly loss of $1.88 per share in its upcoming report, which represents a year-over-year change of +22.6%. Revenues are expected to be $771.22 million, up 1328.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Rivian Automotive, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RIVN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Rivian Automotive is a member of the Zacks Automotive - Domestic industry. One other stock in the same industry, Ford Motor Company (F - Free Report) , finished the last trading session 3.2% higher at $12.80. F has returned 9.2% over the past month.

Ford Motor Company's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.59. Compared to the company's year-ago EPS, this represents a change of +126.9%. Ford Motor Company currently boasts a Zacks Rank of #5 (Strong Sell).


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