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

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Nikola (NKLA - Free Report) closed at $0.81 in the latest trading session, marking a -1.29% move from the prior day. This change lagged the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 10.47%.

Coming into today, shares of the pioneer in zero-emission trucks had lost 44.89% in the past month. In that same time, the Auto-Tires-Trucks sector lost 2.81%, while the S&P 500 gained 2.61%.

Wall Street will be looking for positivity from Nikola as it approaches its next earnings report date. This is expected to be May 9, 2023. The company is expected to report EPS of -$0.28, down 33.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.25 million, up 759.58% from the year-ago period.

NKLA's full-year Zacks Consensus Estimates are calling for earnings of -$1.01 per share and revenue of $238.13 million. These results would represent year-over-year changes of +9.01% and +368.53%, respectively.

Investors should also note any recent changes to analyst estimates for Nikola. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nikola is currently a Zacks Rank #3 (Hold).

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow NKLA in the coming trading sessions, be sure to utilize Zacks.com.


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