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NIO Inc. (NIO) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

NIO Inc. (NIO) closed the most recent trading day at $3.11, moving -0.64% from the previous trading session. This change lagged the S&P 500's 9.28% gain on the day. Meanwhile, the Dow gained 9.36%, and the Nasdaq, a tech-heavy index, added 9.34%.

Coming into today, shares of the company had lost 22.33% in the past month. In that same time, the Auto-Tires-Trucks sector lost 27.13%, while the S&P 500 lost 26.56%.

NIO will be looking to display strength as it nears its next earnings release, which is expected to be March 18, 2020. In that report, analysts expect NIO to post earnings of -$0.36 per share. This would mark year-over-year growth of 23.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $412.45 million, down 17.46% from the year-ago period.

Investors might also notice recent changes to analyst estimates for NIO. 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, 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 remained stagnant within the past month. NIO is holding a Zacks Rank of #3 (Hold) right now.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% 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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