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Nikola (NKLA) Gains But Lags Market: What You Should Know

Zacks Equity Research
·2-min read

Nikola (NKLA) closed the most recent trading day at $3.94, moving +1.03% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.25%.

Coming into today, shares of the pioneer in zero-emission trucks had lost 27.91% in the past month. In that same time, the Auto-Tires-Trucks sector lost 6.75%, while the S&P 500 lost 9.93%.

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%.

It is also important to note the recent changes to analyst estimates for Nikola. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 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 137, putting it in the bottom 46% 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.


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Zacks Investment Research