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NIO Inc. (NIO) Stock Sinks As Market Gains: Here's Why

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In the latest close session, NIO Inc. (NIO - Free Report) was down 1.83% at $4.83. The stock's performance was behind the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.33%.

Coming into today, shares of the company had gained 42.2% in the past month. In that same time, the Auto-Tires-Trucks sector gained 2.82%, while the S&P 500 gained 4.93%.

Market participants will be closely following the financial results of NIO Inc. in its upcoming release. The company is predicted to post an EPS of -$0.3, indicating a 11.76% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.76 billion, reflecting a 14.78% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$1.04 per share and revenue of $13.66 billion, which would represent changes of +31.13% and +49.61%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for NIO Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.24% downward. NIO Inc. is holding a Zacks Rank of #3 (Hold) right now.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 227, finds itself in the bottom 9% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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