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NIO Inc. (NIO) Flat As Market Sinks: What You Should Know

Zacks Equity Research

NIO Inc. (NIO) closed at $2.39 in the latest trading session, marking no change from the prior day. This change was narrower than the S&P 500's 1.51% loss on the day. Elsewhere, the Dow lost 1.69%, while the tech-heavy Nasdaq lost 1.53%.

Coming into today, shares of the company had lost 35.75% in the past month. In that same time, the Auto-Tires-Trucks sector lost 27.08%, while the S&P 500 lost 18.13%.

Investors will be hoping for strength from NIO as it approaches its next earnings release. The company is expected to report EPS of -$0.33, up 8.33% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.06 per share and revenue of $1.83 billion, which would represent changes of +30.72% and +61.7%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for NIO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NIO is currently a Zacks Rank #3 (Hold).

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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