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Fisker Inc. (FSR) Soars 15.0%: Is Further Upside Left in the Stock?

Fisker Inc. (FSR) shares rallied 15% in the last trading session to close at $7.84. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.6% loss over the past four weeks.

Fisker’s price rise is part of the broader optimism surrounding the EV sector following Tesla’s solid earnings report. Investors’ sentiments are improving as Tesla noted that supply chain issues are starting to abate gradually and that demand for EVs has not been hit yet amid economic concerns. The soaring popularity and unfaltering demand of EVs along with the hype surrounding the Fisker Ocean model has given the shares of FSR a boost. 

This company is expected to post quarterly loss of $0.40 per share in its upcoming report, which represents a year-over-year change of +14.9%. Revenues are expected to be $1.1 million, up 2650% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Fisker Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FSR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Fisker Inc. is a member of the Zacks Automotive - Domestic industry. One other stock in the same industry, IAA (IAA), finished the last trading session 0.9% higher at $41.22. IAA has returned 1.4% over the past month.

IAA's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.53. Compared to the company's year-ago EPS, this represents a change of -13.1%. IAA currently boasts a Zacks Rank of #3 (Hold).

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