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Nikola Corporation (NKLA) Stock: Technical Analysis, Fundamental Analysis, News, and Price Predictions

StockInvest.us, 1 month ago

Nikola Company Overview

Nikola Corporation (NKLA) is a publicly-traded company listed on the NASDAQ exchange. As of October 6, 2023, Nikola's market capitalization stood at $1.38 billion, with 985.20 million shares outstanding.

Technical Analysis

NKLA closed at $1.4 on October 6, marking a 2.94% change. The stock hit a low and high of $1.28 and $1.41 respectively. The stock had a year-high of $3.97, significantly above its current price, and a year-low of $0.52. The trading volume was 38.30 million shares, below the average volume of 93.34 million shares.

The 50-day moving average of NKLA is $1.63 and the 200-day moving average is $1.64, indicating a downward trend as the current price is lower than both averages. The RSI14 stands at 42, suggesting the stock is neither overbought nor oversold at its current price. The MACD over a 3-month period is 0.138, and the ATR is 13.56. The support level is established at $1.40 while the resistance level is at $1.41.

Fundamental Analysis

Looking at the financial indicators, Nikola has an EPS of -1.35 and PE of -1.04, signaling a loss-making entity at the moment. The negative earnings imply that the company's profitability is currently in questionable status.

Furthermore, the company's discounted cash flow (DCF) is $1.93, which is higher than the current stock price, implying the stock may be undervalued.

Nikola Moreover, NKLA's consensus target price is $10 with a high estimate of $12 and a low of $8. This suggests a potential upside from the current price.

Among market analysts, the consensus recommendation for Nikola is a "Buy", with six analysts recommending "Buy", one recommending a "Strong Buy", and two recommending to "Hold" the stock.

News and Market Sentiments

Recent news indicates Nikola's stock fell due to pressures on the electric vehicle market, with Nikola Corporation still in the early days of ramping up its manufacturing for semi-trucks. Additionally, penny stocks have been waved as red flags recently, possibly creating negative sentiment towards stocks like NKLA. Nevertheless, the surge in short interest suggests that investors are expecting the stock price to decrease further.

Price Predictions

Given the current technical and fundamental indicators, if the pressures on the electric vehicle market subside, and if Nikola can significantly ramp up production, the stock price can potentially increase on the next trading day, October 9, 2023, and throughout the subsequent week.

Final Evaluation

Though currently experiencing a dip, NKLA's price is lower than its DCF valuation and the consensus target price, which suggests some undervaluation. Furthermore, the recommendation consensus from market analysts suggests a positive outlook for this stock. However, the company's current loss-making status and the negative sentiment surrounding penny stocks should not be overlooked.

Therefore, NKLA could be considered a 'Hold' for investors who already own the stock. It may be a 'Buy' for risk-tolerant investors looking for value stocks in the EV market. However, 'Sell' could be an option for those who are not willing to wait for the market sentiment return to positive or are not ready to bear the risks associated with the EV market's volatility. Please note, it is essential to do personal research or consult with a financial advisor before making any decision.

Check full Nikola forecast and analysis here.