We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NIO (NIO - Free Report) is a Zacks Rank #5 (Strong Sell) that designs, develops, manufactures, and sells smart electric vehicles in China.
The stock had a big run back in 2020, but NIO has since lost all gains since the EV bull run started. Investors are at a loss as earnings continue to underperform and analysts’ lower estimates.
About the Company
The Shanghai based company was founded in 2014 and is considered the Tesla of China. NIO offers five, six, and seven-seater electric SUVs, as well as smart electric sedans. The company also is also involved in the provision of energy and service packages to its users.
NIO isvalued at $14.7 Billion and holds Zacks Style Scores of “F” in Growth, “D” in Value, but “B” in Momentum. The stock pays no dividend.
Q4 Earnings
NIO released Q4 earnings in early March seeing EPS at -$0.44 vs the -$0.16 expected. While sales were up to $2.33B from the $1.55B last year, the EPS missed brought selling into the stock.
The big issue was a contraction in margins that came in at 3.9%, down from the 17.2% the year prior. NIO blamed the contraction to accelerated depreciation, and losses on purchase commitments for the existing ES8, ES6 and EC6 amid the transition to new models under the NIO Technology Platform 2.0.
Estimates
Since earnings, analysis have been cutting their numbers aggressively for the current year. Over the last 90 days, we have seen numbers fall from -$0.51 top -$1.36.
Looking at next year, things don’t get much better. 90 days ago, estimates were expected to come in at a gain of 6 cents. But now, a loss of 47 cents is expected.
Considering the Tesla earnings report coming up short, investors might want to take extreme caution as we head into NIO earnings.
Technical Take
In early 2020, NIO was just a $3 stock that had a dream. When EV got hot, this dream was realized as the stock ran all the way to $66. From there, the stock became very volatile in 2021 and started to bleed lower in 2022.
The collapse continues as the stock recently hit lows not seen since July of 2022.
For those interested in moving averages, the 50-day is at $9.40 and the 200-day is at $13.50. These will likely become areas of resistance if the stock manages to rally.
Summary
NIO was a former EV highflyer that continues to bleed lower. The estimates are showing no relief coming anytime soon, so investors should shy away from the name.
For those interested in the sector, a better option might be Byd (BYDDY - Free Report) . The stock is a Zacks Rank #1 (Strong Buy), and is trading up 15% on the year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bear of the Day: NIO (NIO)
NIO (NIO - Free Report) is a Zacks Rank #5 (Strong Sell) that designs, develops, manufactures, and sells smart electric vehicles in China.
The stock had a big run back in 2020, but NIO has since lost all gains since the EV bull run started. Investors are at a loss as earnings continue to underperform and analysts’ lower estimates.
About the Company
The Shanghai based company was founded in 2014 and is considered the Tesla of China. NIO offers five, six, and seven-seater electric SUVs, as well as smart electric sedans. The company also is also involved in the provision of energy and service packages to its users.
NIO isvalued at $14.7 Billion and holds Zacks Style Scores of “F” in Growth, “D” in Value, but “B” in Momentum. The stock pays no dividend.
Q4 Earnings
NIO released Q4 earnings in early March seeing EPS at -$0.44 vs the -$0.16 expected. While sales were up to $2.33B from the $1.55B last year, the EPS missed brought selling into the stock.
The big issue was a contraction in margins that came in at 3.9%, down from the 17.2% the year prior. NIO blamed the contraction to accelerated depreciation, and losses on purchase commitments for the existing ES8, ES6 and EC6 amid the transition to new models under the NIO Technology Platform 2.0.
Estimates
Since earnings, analysis have been cutting their numbers aggressively for the current year. Over the last 90 days, we have seen numbers fall from -$0.51 top -$1.36.
Looking at next year, things don’t get much better. 90 days ago, estimates were expected to come in at a gain of 6 cents. But now, a loss of 47 cents is expected.
Considering the Tesla earnings report coming up short, investors might want to take extreme caution as we head into NIO earnings.
Technical Take
In early 2020, NIO was just a $3 stock that had a dream. When EV got hot, this dream was realized as the stock ran all the way to $66. From there, the stock became very volatile in 2021 and started to bleed lower in 2022.
The collapse continues as the stock recently hit lows not seen since July of 2022.
For those interested in moving averages, the 50-day is at $9.40 and the 200-day is at $13.50. These will likely become areas of resistance if the stock manages to rally.
Summary
NIO was a former EV highflyer that continues to bleed lower. The estimates are showing no relief coming anytime soon, so investors should shy away from the name.
For those interested in the sector, a better option might be Byd (BYDDY - Free Report) . The stock is a Zacks Rank #1 (Strong Buy), and is trading up 15% on the year.