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NIO Inc. (NIO) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, NIO Inc. (NIO - Free Report) closed at $3.78, marking a -1.05% move from the previous day. This change lagged the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.51%.

Heading into today, shares of the company had lost 18.38% over the past month, lagging the Auto-Tires-Trucks sector's loss of 16.71% and the S&P 500's loss of 4.45% in that time.

The investment community will be closely monitoring the performance of NIO Inc. in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.46, showcasing a 9.8% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.35 billion, indicating a 94.47% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$1.42 per share and a revenue of $9.24 billion, representing changes of +18.86% and +18.64%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for NIO Inc. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.53% downward. Currently, NIO Inc. is carrying a Zacks Rank of #4 (Sell).

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 178, finds itself in the bottom 30% echelons 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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