NIO Inc. (NIO) Stock Declines: Key Information for Traders

NIO Inc. stock slides as market rises, trailing behind S&P 500. NIO's upcoming financial results are closely watched, with expected earnings decline. Recent revisions in analyst estimates indicate favorable outlook, and the stock currently has a Zacks Rank of #2 (Buy). The Automotive - Foreign industry, to which NIO belongs, has a strong Zacks Industry Rank.
Nov. 20, 2023 02:50
NIO Inc. (NIO) Stock Declines: Key Information for Traders

The most recent trading session ended with NIO Inc. (NIO) closing at $7.39, which was a slight decrease of -0.14% compared to the previous day's closing. The stock performed worse than the S&P 500, which saw a daily gain of 0.13%. Meanwhile, the Dow increased by 0.01% and the Nasdaq, which is weighted towards technology companies, rose by 0.08%.

Prior to today's trading, NIO Inc.'s shares had experienced a loss of 3.77% over the past month. This underperformed the Auto-Tires-Trucks sector, which had a loss of 3.64%, as well as the S&P 500, which gained 3.28% during the same period.

Investors will be closely monitoring the upcoming financial results of NIO Inc. Analysts are expecting the company to report earnings of -$0.43 per share, representing a year-over-year decline of 19.44%. The consensus estimate for quarterly revenue is $2.63 billion, a 43.95% increase compared to the same period last year.

For the full year, the Zacks Consensus Estimates project earnings of -$1.79 per share and revenue of $8.46 billion. This would result in changes of -38.76% and +16.54%, respectively, compared to the previous year.

It is important for investors to take note of any recent changes in analyst estimates for NIO Inc. These revisions often reflect the evolving short-term business trends. Positive changes in estimates indicate analysts' positive outlook on the company's business health and profitability.

Research suggests that these estimate changes have a direct relationship with the future stock price performance. To take advantage of this, the Zacks Rank has been established as an exclusive model that considers these estimated changes and provides an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a proven track record of outperformance. #1 ranked stocks have generated an average annual return of +25% since 1988. Currently, NIO Inc. holds a Zacks Rank of #2 (Buy).

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 40, placing it in the top 16% of all 250+ industries.

The Zacks Industry Rank measures the strength of industry groups by averaging the Zacks Rank of individual stocks within the groups. Research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

For more information on these metrics and more, visit Zacks.com.

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