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Why Nikola (NKLA) Dipped More Than Broader Market Today

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In the latest trading session, Nikola (NKLA - Free Report) closed at $0.74, marking a -1.35% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.48%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.82%.

The pioneer in zero-emission trucks's stock has climbed by 20.62% in the past month, exceeding the Auto-Tires-Trucks sector's gain of 2.01% and the S&P 500's gain of 5.3%.

The upcoming earnings release of Nikola will be of great interest to investors. The company's earnings report is expected on February 22, 2024. The company is expected to report EPS of -$0.16, up 56.76% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $14.52 million, indicating a 121.27% growth compared to the corresponding quarter of the prior year.

It is also important to note the 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. 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 group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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