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Nikola (NKLA) Gains But Lags Market: What You Should Know

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Nikola (NKLA - Free Report) closed the most recent trading day at $5.71, moving +0.53% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.45%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.17%.

Prior to today's trading, shares of the pioneer in zero-emission trucks had lost 9.12% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 2.68% and the S&P 500's loss of 5.71% in that time.

Wall Street will be looking for positivity from Nikola as it approaches its next earnings report date. In that report, analysts expect Nikola to post earnings of -$0.27 per share. This would mark a year-over-year decline of 35%.

It is also important to note the recent changes to analyst estimates for Nikola. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nikola is holding a Zacks Rank of #2 (Buy) right now.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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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