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

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Nikola (NKLA - Free Report) closed the most recent trading day at $7.92, moving -1.98% from the previous trading session. This move lagged the S&P 500's daily loss of 0.72%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.67%.

Coming into today, shares of the pioneer in zero-emission trucks had gained 1.13% in the past month. In that same time, the Auto-Tires-Trucks sector lost 15.22%, while the S&P 500 lost 5.92%.

Investors will be hoping for strength from Nikola as it approaches its next earnings release, which is expected to be February 24, 2022. In that report, analysts expect Nikola to post earnings of -$0.29 per share. This would mark a year-over-year decline of 70.59%.

Any recent changes to analyst estimates for Nikola should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Nikola is holding a Zacks Rank of #3 (Hold) right now.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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