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Nikola (NKLA) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Nikola (NKLA - Free Report) closed at $1.64, marking a -1.8% move from the previous day. This move lagged the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Coming into today, shares of the pioneer in zero-emission trucks had lost 33.47% in the past month. In that same time, the Auto-Tires-Trucks sector lost 9.5%, while the S&P 500 lost 5.06%.
Investors will be hoping for strength from Nikola as it approaches its next earnings release. On that day, Nikola is projected to report earnings of -$0.28 per share, which would represent a year-over-year decline of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $14.9 million, up 688.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.01 per share and revenue of $271.47 million, which would represent changes of +9.01% and +434.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nikola. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 19.86% higher. Nikola is currently a Zacks Rank #3 (Hold).
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NKLA in the coming trading sessions, be sure to utilize Zacks.com.