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Nikola Corporation (NKLA) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Nikola Corporation (NKLA) closed at $19.46, marking a +1.88% move from the previous day. This move outpaced the S&P 500’s daily gain of 1.6%. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq added 2.26%.

Coming into today, shares of the company had lost 51.41% in the past month. In that same time, the Auto-Tires-Trucks sector lost 4.31%, while the S&P 500 lost 5.3%.

NKLA will be looking to display strength as it nears its next earnings release.

Investors should also note any recent changes to analyst estimates for NKLA. These revisions help to show the ever-changing nature of near-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, 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 remained stagnant. NKLA is currently sporting a Zacks Rank of #4 (Sell).

The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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