NIO) Turns Green, Is The Bottom In For The Chinese EV Maker?
Global EV stocks, in general, and NIO stock price, in particular, have taken massive hits in the last few months. The investor focus seems to have shifted from the EV sector to more lucrative equities like AI stocks. The stock of the Chinese EV manufacturer, NIO, has been in a free fall since its August 2023 peak of $16.18.
Since then, the stock has lost 65% of its value. However, after an intense sell-off, NIO shares are consolidating in a very tight range close to their IPO price. In this article, we will deeply analyze the recent price action to determine if the stock is really a bargain at current prices.
The US stock market seems to be in goldilocks as the benchmark indices have hit record highs this year. The S&P 500 index hit a new all-time high of 5,111 points last week, and the NASDAQ 100 and DOW Jones Industrial Averages are also looking very bullish. However, despite all the bullishness, EV stocks have failed to catch any significant bids.
A broader look at the EV industry reveals that the ongoing price wars have squeezed the margins for the manufacturers. The effect is evident by the downtrend in the Tesla stock price, which is down 19.75% this year. The state of NIO stock is even worse, as it has slid 37.7% in less than two months.
Wall Street Expects NIO Earnings To Be Slightly Better
In the last few weeks, the Wall Street sentiment around NYSE: NIO has seen a modest change. According to the latest news, the Wall Street analysts expect the company to report better earnings than previously anticipated.
Additionally, Zach Investment Research has assigned Rank#2 (Buy) to NIO, which puts it in the top 20% out of the 4,000 stocks that the firm ranks. This is quite significant as the electric car manufacturer is set to release its earnings on 5 March.
NIO Stock Forecast
As mentioned earlier, NYSE: NIO is trading below its IPO price. The current levels have sparked some interest from long-term investors. This is evident from the bullish divergences on the daily RSI and MFI indicators. Such divergences usually precede the trend reversals.
The short-term NIO stock price forecast will depend on the upcoming earnings release. However, for a long-term outlook, the stock needs to hold $5.50 support to avoid another bearish leg. In case of a strong bullish push, the stock may retest its previous support of $7, as shown by the redline on the following chart.
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Global EV stocks, in general, and NIO stock price, in particular, have taken massive hits in the last few months. The investor focus seems to have shifted from the EV sector to more lucrative equities like AI stocks. The stock of the Chinese EV manufacturer, NIO, has been in a free fall since its August 2023 peak of $16.18.
Since then, the stock has lost 65% of its value. However, after an intense sell-off, NIO shares are consolidating in a very tight range close to their IPO price. In this article, we will deeply analyze the recent price action to determine if the stock is really a bargain at current prices.
The US stock market seems to be in goldilocks as the benchmark indices have hit record highs this year. The S&P 500 index hit a new all-time high of 5,111 points last week, and the NASDAQ 100 and DOW Jones Industrial Averages are also looking very bullish. However, despite all the bullishness, EV stocks have failed to catch any significant bids.
A broader look at the EV industry reveals that the ongoing price wars have squeezed the margins for the manufacturers. The effect is evident by the downtrend in the Tesla stock price, which is down 19.75% this year. The state of NIO stock is even worse, as it has slid 37.7% in less than two months.
Wall Street Expects NIO Earnings To Be Slightly Better
In the last few weeks, the Wall Street sentiment around NYSE: NIO has seen a modest change. According to the latest news, the Wall Street analysts expect the company to report better earnings than previously anticipated.
Additionally, Zach Investment Research has assigned Rank#2 (Buy) to NIO, which puts it in the top 20% out of the 4,000 stocks that the firm ranks. This is quite significant as the electric car manufacturer is set to release its earnings on 5 March.
NIO Stock Forecast
As mentioned earlier, NYSE: NIO is trading below its IPO price. The current levels have sparked some interest from long-term investors. This is evident from the bullish divergences on the daily RSI and MFI indicators. Such divergences usually precede the trend reversals.
The short-term NIO stock price forecast will depend on the upcoming earnings release. However, for a long-term outlook, the stock needs to hold $5.50 support to avoid another bearish leg. In case of a strong bullish push, the stock may retest its previous support of $7, as shown by the redline on the following chart.
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