|Bid||0.00 x 2200|
|Ask||0.00 x 1000|
|Day's Range||107.83 - 109.46|
|52 Week Range||91.83 - 118.13|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.07|
|Expense Ratio (net)||0.14%|
Wells Fargo's Christopher Harvey says don't worry, the rally is on the way. Is value back in vogue? With CNBC's Melissa Lee and the Fast Money traders, Tim Seymour, Brian Kelly, Steve Grasso and Guy Adami.
AG Jeff Sessions resigns, and Michigan votes to legalize marijuana for recreational use. Huge news for the booming marijuana industry.
In the week that ended on November 9, Tesla (TSLA) stock continued to trade on a positive note for the fourth consecutive week. In the third quarter, Tesla fell 22.8%. Other auto stocks (XLY) General Motors (GM) and Ford Motor Company (F) have risen 6.0% and 1.4% quarter-to-date, respectively, while Fiat Chrysler Automobiles (FCAU) has fallen 7.1% in the fourth quarter so far.
As of November 12, McDonald’s (MCD) was trading at $184.37, which is an increase of 10.6% since the announcement of its third-quarter earnings on October 23. For the quarter ended on September 30, McDonald’s posted adjusted EPS of $2.10 on revenues of $5.37 billion, outperforming analysts’ EPS expectations of $1.99 and revenue expectation of $5.32 billion.
In the week that ended on November 9, General Motors (GM) stock fell 0.9% after registering a solid rise of 10.4% in the previous week. GM stock rose 8.7% in October despite a 6.9% fall in the S&P 500 Index. It has fallen 2.4% month-to-date as of November 12.
In the week that ended on November 9, Ford Motor Company (F) stock settled at $9.38, with no change from the previous week’s closing price. In the previous week, it rose 4.5%.
Strong domestic macroeconomic indicators may point to a jolly holiday shopping season and a favorable outlook for consumer sector-specific ETFs. Last year was the best holiday shopping season in three years for companies, and Matthew Boss, J.P. Morgan's equity research analyst focusing on retailing, argued that the strengthening U.S. consumer as the year progressed could bode well for sales this year as well. Boss warned that company-specific and industry-wide volatility could continue.
The broader market ended last week on a positive note due to the gains that followed the US midterm election results on November 7. Last week, the S&P 500 benchmark (SPY) rose 2.1%. This was the second consecutive week during which US equities continued to rally.
NYU1 Stern School of Business professor Aswath Damodaran calls Tesla (TSLA) “the ultimate story stock.” He also stated on his blog that “investors in Tesla were investing in Elon Musk, not the company.” If we look at Tesla stock’s gains in the last five years, we could find some sense in Damodaran’s statements. TSLA stock has frequently rallied sharply based on Musk’s tweets about the company’s future plans and reassurance of meeting targets despite past failures.
Is NIO’s Story More Believable than Tesla’s? Previously, we looked at NIO’s (NIO) Wall Street journey since its listing on the New York Stock Exchange. Only ~40% of the analysts covering the stock recommend “buy,” while 50% are neutral and recommend “hold.” Let’s now look at some of the challenges NIO might face in its endeavor to become a popular electric carmaker like Tesla (TSLA).
Is NIO’s Story More Believable than Tesla’s? NIO (NIO) stock has been highly volatile since its listing on the New York Stock Exchange in September. NIO’s start on Wall Street underwhelmed investors with an IPO of $6.26 per American depositary share on September 12.
According to the latest consensus compiled by Reuters, 52% of the 23 analysts covering Advance Auto Parts (AAP) gave its stock “buy” ratings. The remaining 48% of these analysts were recommending a “hold,” while no surveyed Wall Street analyst suggested a “sell.”
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
The company also beat Wall Street analysts’ consensus revenue estimates of $2.27 billion. This was the first quarter that AAP reported positive YoY growth in its revenue after reporting YoY declines in the past three quarters. In the first quarter of this year, its sales went down by 0.6% YoY.
On November 7 after the market closed, Tesla (TSLA) announced its appointment of Robyn Denholm as Tesla’s new chair of the board. Denholm is currently working as CFO at Australia’s largest telecommunications firm, Telstra.
Investors should pay attention to popular analysts’ ratings, as they may affect the company’s stock price action. If a popular analyst changes his or her views, significant short-term movement in the stock price could follow. As of November 6, analysts’ consensus 12-month target price on NIO was $7.90, which reflected an upside potential of ~23.4% from its market price of $6.40.
The second-largest auto parts retailer (XLY) by 2017 revenue, Advance Auto Parts (AAP), is scheduled to release its Q3 earnings on November 13 before the market opens. Before we begin exploring Wall Street analysts’ estimates for the company’s upcoming earnings, let’s take a quick look at its recent stock price movement.
As of November 6, NIO’s (NIO) forward price-to-book multiple was 38.9x. This multiple was calculated based on the company’s estimated book value for the next 12 months. At the same time, Tesla’s (TSLA) forward price-to-book multiple was much lower at 9.4x. Alibaba (BABA) and Baidu (BIDU), other Chinese companies, had forward price-to-book ratios of 4.9x and 2.6x, respectively.
NIO vehicle buyers have several options to charge their electric vehicles (or EVs) including Power Swap, Power Mobile, Power Home, and using China’s nationwide EV charging network. Among these, one of the much talked about options is the Power Swap option, which allows NIO car owners to swap their car battery at its battery swapping stations. The Power Swap service was initially expected to be a better option for EV owners, as the car battery can be swapped within a few minutes, while charging the battery at a station might take much longer.
According to the latest consensus data compiled by Reuters, 45% of the 11 analysts covering Ferrari (RACE) gave its stock “buy” recommendations. 55% of analysts recommended a “hold,” while none of the analysts gave it a “sell” rating.
The company’s future revenue growth is highly dependent on its upcoming car model ES6, which it expects to launch by the end of 2018. Consistent solid demand for ES6 could make NIO’s revenue grow faster than Tesla’s revenue at its initial stage. In the third quarter, NIO reported a gross loss of about 116 million Chinese yuan, or $16.9 million, as compared to a gross loss of 153 million Chinese yuan in the second quarter.
In the third quarter, NIO (NIO) reported net revenue of 1,470 million Chinese yuan (or ~$214.0 million) as compared to its revenue of 46 million Chinese yuan in the second quarter. However, the company’s third-quarter revenues were weaker than Wall Street analysts’ estimates of 1,589 million Chinese yuan.