Sign InSummary
NIO Inc. closed at $9.99 on July 07, 2023, with a 4.50% change, and despite underwhelming quarterly figures, positive news on sales and a potential undervaluation suggest a 'Buy' rating for long-term investors, with future performance depending on market trends and sentiment towards the EV sector.
Stock Analysis of NIO Inc.
NIO Inc., a Chinese electric vehicle manufacturer, closed at $9.99 on July 07, 2023, marking a 4.50% change. The stock price fluctuated between $9.66 and $10.09 during the same trading day. Over the last year, the company has experienced a low and high price of $7 and $23.28, respectively.
Trading Volumes and Market Capitalization
On the last trading day, the volume of NIO shares traded was approximately 50.39 million, slightly less than the average volume of 53.32 million, indicating a relatively mediocre trading activity. The current market capitalization of the company stands at $16.86 billion.
Technical Analysis
The 50-day moving average (MA) rests at $8.37, while the 200-day MA stands at $10.47. These figures suggest that the stock is currently trading at a premium regarding the 50-day MA but slightly below the 200-day MA. Such a discrepancy could indicate a short-term upward momentum and a potential long-term downtrend. The moving average convergence-divergence (MACD) over the last three months registers 0.64, hinting at positive momentum in the stock. RELATIVE STRENGTH INDEX (RSI) stands at 52, suggesting the stock is neither overbought nor oversold.
Fundamental Analysis
NIO Inc. reports an EPS (Earnings Per Share) of -$1.59 and a negative PE ratio of -6.28, indicating that the company is not currently profitable.
Discounted Cash Flow Analysis and Future Expectations
The stock currently registers a discounted cash flow (DCF) figure of $22.14, potentially suggesting an undervaluation. Considering the high, low, consensus, and median forecasts for the share price sit at $83, $13, $35.15, and $31.3 respectively, the consensus appears to be bullish on the future performance of NIO Inc.
Relevant News
Several news articles report a positive outlook for the company. The rebound in NIO's deliveries in June and the increase in its EV sales by 74% could potentially trigger a bull run for the stock. However, the reported underwhelming quarterly production and sales figures that affected investor sentiment should not be overlooked.
Stock Performance Prediction
Given the current momentum, technical, and fundamental analysis coupled with recent news articles, we predict the stock to perform relatively steady on the next trading day, July 10, 2023. However, its performance for the upcoming week may depend largely on market trends and the overall sentiment towards the electric vehicle sector.
Evaluation
Consider the above analysis, the bullish consensus on the future performance, recent positive news on sales numbers, and the discounted cash flow suggesting a potential undervaluation, NIO Inc. appears to be a 'Buy', especially for long-term investors willing to weather periods of short-term volatility. Please keep in mind that this analysis should not replace personal judgment or advice from a certified professional.
