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Nikola Corporation (NKLA) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Nikola Corporation (NKLA) closed the most recent trading day at $32.75, moving -1.36% from the previous trading session. This change lagged the S&P 500's 0.65% loss on the day. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.27%.

Heading into today, shares of the company had lost 50.87% over the past month, lagging the Auto-Tires-Trucks sector's gain of 20.39% and the S&P 500's gain of 7.76% in that time.

NKLA will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2020. On that day, NKLA is projected to report earnings of -$0.14 per share, which would represent a year-over-year decline of 566.67%.

Any recent changes to analyst estimates for NKLA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.59% higher. NKLA is currently a Zacks Rank #3 (Hold).

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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