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NIO Inc. (NIO) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

NIO Inc. (NIO) closed the most recent trading day at $4.34, moving -1.48% from the previous trading session. This change lagged the S&P 500's 0.38% loss on the day. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq added 0.17%.

Prior to today's trading, shares of the company had gained 4.51% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 1.21% and the S&P 500's loss of 4.88% in that time.

Investors will be hoping for strength from NIO as it approaches its next earnings release. The company is expected to report EPS of -$0.36, up 23.4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $412.45 million, down 17.46% from the year-ago period.

It is also important to note the recent changes to analyst estimates for NIO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NIO is currently a Zacks Rank #4 (Sell).

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 27% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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