On MONDAY, Shares of NIO Inc. (NYSE:NIO) reached at $39.42 price level during last trade its distance from 20 days simple moving average was 1.76%, and its distance from 50 days simple moving average was -4.34% while it has a distance of 8.62% from the 200 days simple moving average. For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Has NIO (NIO) been one of those stocks this year? Let’s take a closer look at the stock’s year-to-date performance to find out.
NIO is one of 105 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. NIO is currently sporting a Zacks Rank of #3 (Hold).
Within the past quarter, the Zacks Consensus Estimate for NIO’s full-year earnings has moved 15.12% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
According to our latest data, NIO has moved about -20% on a year-to-date basis. In comparison, Auto-Tires-Trucks companies have returned an average of 0.79%. This means that NIO is outperforming the sector as a whole this year.
Breaking things down more, NIO is a member of the Automotive – Foreign industry, which includes 23 individual companies and currently sits at #80 in the Zacks Industry Rank. On average, stocks in this group have lost 5.69% this year, meaning that NIO is slightly underperforming its industry in terms of year-to-date returns.
Investors in the Auto-Tires-Trucks sector will want to keep a close eye on NIO as it attempts to continue its solid performance.
Why NIO Stock Is Higher Today
NIO said on Saturday that it delivered 7,102 vehicles in April. That was down slightly from the 7,257 vehicles it delivered in March, but it was a good showing amid a shortage of semiconductors that has forced NIO and other automakers to reduce production.
NIO warned last week that the chip shortage will limit its ability to increase production as planned. NIO upgraded its production line over the winter and now has the capacity to make about 10,000 vehicles per month, but the shortage of chips will keep its monthly output between 7,000 and 7,500 for the time being, CEO William Bin Li told auto investors last week.
In line with those numbers, NIO’s second-quarter production guidance calls for deliveries of between 21,000 and 22,000 vehicles. That would be roughly double its year-ago total and up about 10% from the first quarter.
The stock was moving up on Monday because April’s delivery total was comfortably in line with last week’s guidance, and because two Wall Street analysts took note of that.
Past 5 years growth of NIO observed at 0, and for the next five years the analysts that follow this company are expecting its growth at -0.15%. The average true range (ATR) is a measure of volatility introduced by Welles Wilder in his book, “New Concepts in Technical Trading Systems.” The true range indicator is the greatest of the following: current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close. The average true range is a moving average, generally 14 days, of the true ranges.
The stock has a market cap of $63.89B with 1.35B shares outstanding, of which the float was 1.01B shares. Analysts consider this stock active, since it switched Trading volume reached 62,550,429 shares as compared to its average volume of 94.03M shares. The Average Daily Trading Volume (ADTV) demonstrates trading activity related to the liquidity of the security. When Ave Volume tends to increase, it shows enhanced liquidity.
But when Ave Volume is lower, the security will tend to be cheap as people are not as keen to purchase it. Hence, it might have an effect on the worth of the security. NIO’s relative volume was 1.05. Relative volume is a great indicator to keep a close eye on, but like most indicators it works best in conjunction with other indicators and on different time frames. Higher relative volume you will have more liquidity in the stock which will tighten spreads and allow you to trade with more size without a ton of slippage.
Important Technical Indicators Analysis Report and Volatility Measures:
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which calculates the predictable return of an asset based on its beta and predictable market returns. Beta is also known as the beta coefficient.
A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. After a recent check, beta value for this stock comes out to be 0. A statistical measure of the dispersion of returns (volatility) for NIO producing salvation in Investors mouth, it has week volatility of 6.43% and for the month booked as 5.82%. Regardless of which metric you utilize, a firm understanding of the concept of volatility and how it is measured is essential to successful investing. A stock that maintains a relatively stable price has low volatility. When investing in a volatile security, the risk of success is increased just as much as the risk of failure.
The volatility value is used by the investors for various reasons and purposes in measuring the fundamental price change and the rate of variation in NIO’s price. The ART is a specific type of indicator, which is capable of weighing up stock volatility in the financial markets effectively.
NIO Inc. has an average true range (ATR) of 2.47. Other technical indicators are worth considering in assessing the prospects for EQT. NIO’s price to sales ratio for trailing twelve months was 25.43 and price to book ratio for most recent quarter was 12.77, whereas price to cash per share for the most recent quarter was 9.76. The Company’s price to free cash flow for trailing twelve months was 0. Its quick ratio for most recent quarter was 3.20. Analysts mean recommendation for the stock was 2.30. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
Should You Go With High Insider Ownership?
Many value investors look for stocks with a high percent of insider ownership, under the theory that when management are shareholders, they will act in its own self interest, and create shareholder value in the long-term. This aligns the interests of shareholders with management, thus benefiting everyone. While this sounds great in theory, high insider ownership can actually lead to the opposite result, a management team that is unaccountable because they can keep their jobs under almost any circumstance.
NIO Inc.‘s shares owned by insiders remained 0.53%, whereas shares owned by institutional owners are 36.60%.
Where Do Relative Strength Index (RSI) Stands?
Perhaps, it is one of the most important indicators, because it is used in the technical analysis of the stock in the money market. The relative strength index (RSI) is claimed to depict the latest and past performances of the stock market, based upon the ending price volumes of the current trading period. The RSI is characterized as a momentum oscillator, evaluating the speed and scale of directional price shifts. The momentum exemplifies both rising and falling rates of the price in the stock market. Using RSI, you can calculate momentum as the percentage of elevated closes to reduced closes. But if the stocks have experienced optimistic changes rapidly, then it might have an increased RSI than stocks. So, it might cause negative changes in the market.
The RSI index is largely used by traders on a 14-day time period and is evaluated on a range from 0 to 100, along with both high and low volumes marked at 70 and 30, correspondingly. Both the shorter and longer timeframes are used by the traders for shorter and longer purposes. It further adds high and low ranges like from 80 to 20 and from 90 to 10. This trend takes place less repeatedly.
However, it represents stronger momentum in the market. In the meantime, the Accenture plc’s 14-day RSI was settled at 48.52. All in all, the trends of the stock market were shifting slowly but surely.
Meanwhile, NIO traded under umbrella of Consumer Cyclical sector, the stock was traded -41.15% ahead of its 52-week high and 1180.03% beyond its 52-week low. So, both the price and 52-week high indicators would give you a clear-cut picture to evaluate the price direction.