NIO Inc. (NIO) Laps the Stock Market: Here's Why

The investment community will be closely monitoring the performance of NIO Inc. in its forthcoming earnings report. In that report, analysts expect NIO Inc. to post earnings of -$0.07 per share. This would mark year-over-year growth of 78.13%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.87 billion, indicating a 83.44% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.1 per share and revenue of $19.36 billion. These totals would mark changes of +89.8% and +57%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for NIO Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 has shifted 20.51% upward. As of now, NIO Inc. holds a Zacks Rank of #2 (Buy).

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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