NikolaCorp (NASDAQ: NKLA), a key player in the Farm & Heavy Construction Machinery industry within the Industrials sector, is currently experiencing an unprecedented momentum in the market. Despite reporting a significant loss of
$784.2M applicable to common shares and an operating income loss of $748.7M for the fiscal year ending in December, the company's stock has shown resilience. With a 200-day moving average of 1.9232 and a short ratio of 1.25, the stock's volatility is high, as indicated by a coefficient of variation of 472.98 and a skewness of 2.04. The company's total risk alpha stands at 1.67, while its market risk adjusted performance is 0.6657. Analysts' consensus holds a neutral stance, with six holds and an estimated target price value of 2.4. However, the downside variance is 69.54, with a possible downside price of 0.0302. Despite the challenges,
NikolaCorp's valuation market value stands at $3.02B, and its hype value is 3.32, indicating a potential for growth. The forthcoming financial report for NikolaCorp is anticipated on November 2nd, 2023. The stock is currently experiencing higher-than-average trading activity. While some millennials are still hesitant to engage with the machinery sector, I will delve deeper into NikolaCorp to assess its potential as a sound investment. I will also discuss why investors have overlooked this company since the onset of the current economic climate.
What is the right price you would pay to acquire a share of Nikola Corp? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Nikola Corp this year
Annual and quarterly reports issued by Nikola Corp are formal
financial statements that are published yearly and quarterly and sent to Nikola stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Nikola Corp often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Nikola Corp Gross Profit
Nikola Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Nikola Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Nikola Corp Gross Profit growth over the last 10 years. Please check Nikola Corp's
gross profit and other
fundamental indicators for more details.
Is NikolaCorp a risky opportunity?
Let's check the volatility. NikolaCorp is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind NikolaCorp (USA Stocks:NKLA) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of a NikolaCorp stock makes you a part-owner of that company.
NikolaCorp Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering NikolaCorp. The NikolaCorp consensus assessment is calculated by taking the average estimates from all of the analysts covering NikolaCorp
| Strong Buy | 0 | 0.0 |
| Buy | 0 | 0.0 |
| Hold | 6 | 100.0 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
NikolaCorp (NASDAQ: NKLA), a player in the Farm & Heavy Construction Machinery industry, is currently experiencing an unprecedented momentum in the market. Despite a high probability of bankruptcy at 90.99%, the company's market capitalization stands at a significant
$2.24 billion. The firm's shares are heavily shorted with 129.52 million shares shorted, indicating a high level of investor skepticism. However, institutional ownership is at 27.96%, suggesting some level of confidence among professional investors. NikolaCorp's
financial health is characterized by a current ratio of 1.75X, indicating the company's ability to meet its short-term obligations. However, the company's operating margin stands at a loss of 12.46, with a net income loss of
$784.2 million. This is reflected in the company's negative return on assets and equity, standing at -0.45 and -1.37 respectively. Despite these challenges, NikolaCorp's stock has shown resilience with a 52-week high of $8.97. The company's beta of 1.81 suggests higher volatility compared to the market, which could offer potential upside for risk-tolerant investors. The company's price to book ratio stands at 1.79X, which is relatively low, indicating the stock may be undervalued. In conclusion, while NikolaCorp presents certain financial risks, its current momentum and potential undervaluation may offer an attractive opportunity for risk-tolerant investors.
Our take on today NikolaCorp slip
Despite today's decline in NikolaCorp's stock, investors should not overlook the company's potential upside of over 18.18%. This downturn could be perceived as a buying opportunity for those who have faith in the company's long-term prospects. NikolaCorp's innovative approach to the electric vehicle market, along with its strategic partnerships, could fuel its future growth. Therefore, while short-term market fluctuations may cause worry, the potential return on investment remains promising. NikolaCorp is demonstrating above-average volatility over the selected time period. Investors should examine NikolaCorp independently to ensure their intended
market timing strategies align with expectations about NikolaCorp's volatility. Understanding varying
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure NikolaCorp's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect
NikolaCorp's stock price, adding stress for investors as they watch the value of their shares plummet.
This usually compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, NikolaCorp (NKLA) presents a complex investment scenario. The overall
analyst consensus is a 'Hold', with six analysts maintaining this stance. The estimated target price value is at $2.4, with a possible upside price of $15.06, a figure that seems quite optimistic given the current circumstances. However, the potential downside price of $0.0302 is a stark reminder of the risks involved. The valuation market value stands at
3.02, while the valuation real value is slightly lower at
2.45. The disparity between these figures and the naive expected forecast value of 3.09 suggests that the stock's performance may be influenced by hype value, currently at 3.32. Given these factors, investors should tread carefully and consider the inherent volatility and potential downside before investing in NikolaCorp. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Nikola Corp. Please refer to our
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