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 $19.79, moving +0.61% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.2%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 1.64%.

Heading into today, shares of the company had lost 3.96% over the past month, lagging the Auto-Tires-Trucks sector's loss of 3.05% and the S&P 500's loss of 2.23% in that time.

Investors will be hoping for strength from NKLA as it approaches its next earnings release, which is expected to be November 9, 2020.

Investors should also note any recent changes to analyst estimates for NKLA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.92% lower within the past month. NKLA is currently a Zacks Rank #4 (Sell).

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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