S&P 500   5,096.27
DOW   38,996.39
QQQ   439.00
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Stock market today: World stocks track Wall Street gains, Japan shares hit record high
China's manufacturing activity contracts for 5th straight month despite policy support
S&P 500   5,096.27
DOW   38,996.39
QQQ   439.00
Pure Storage, Hormel Foods rise; WW International, First Advantage fall, Thursday, 2/29/2024
Revolutionary Device Redefines Cancer Detection (Ad)
How major US stock indexes fared Thursday, 2/29/2024
Average long-term US mortgage rises to 6.94% after marking fourth-straight weekly increase
Revolutionary Device Redefines Cancer Detection (Ad)
Grads From This Midwestern School Are More Likely to Start a Billion Dollar Company Than Founders Who Went To Stanford, Harvard, or MIT: Study
It's Leap Day, and You're Probably Working — Here's How 'February 29' Affects Your Paycheck
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Stock market today: World stocks track Wall Street gains, Japan shares hit record high
China's manufacturing activity contracts for 5th straight month despite policy support
S&P 500   5,096.27
DOW   38,996.39
QQQ   439.00
Pure Storage, Hormel Foods rise; WW International, First Advantage fall, Thursday, 2/29/2024
Revolutionary Device Redefines Cancer Detection (Ad)
How major US stock indexes fared Thursday, 2/29/2024
Average long-term US mortgage rises to 6.94% after marking fourth-straight weekly increase
Revolutionary Device Redefines Cancer Detection (Ad)
Grads From This Midwestern School Are More Likely to Start a Billion Dollar Company Than Founders Who Went To Stanford, Harvard, or MIT: Study
It's Leap Day, and You're Probably Working — Here's How 'February 29' Affects Your Paycheck
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Stock market today: World stocks track Wall Street gains, Japan shares hit record high
China's manufacturing activity contracts for 5th straight month despite policy support
S&P 500   5,096.27
DOW   38,996.39
QQQ   439.00
Pure Storage, Hormel Foods rise; WW International, First Advantage fall, Thursday, 2/29/2024
Revolutionary Device Redefines Cancer Detection (Ad)
How major US stock indexes fared Thursday, 2/29/2024
Average long-term US mortgage rises to 6.94% after marking fourth-straight weekly increase
Revolutionary Device Redefines Cancer Detection (Ad)
Grads From This Midwestern School Are More Likely to Start a Billion Dollar Company Than Founders Who Went To Stanford, Harvard, or MIT: Study
It's Leap Day, and You're Probably Working — Here's How 'February 29' Affects Your Paycheck
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Stock market today: World stocks track Wall Street gains, Japan shares hit record high
China's manufacturing activity contracts for 5th straight month despite policy support

Nio Stock, Is This The Bottom ? 

Nio Stock, Is This The Bottom ? 

Key Points

  • Nio stock might be bottoming due to strong delivery data. 
  • The company made record deliveries in Q4 and beat its own guidance. 
  • The sentiment is firming and could develop into a tailwind for this name. 
  • 5 stocks we like better than NIO

If you are wondering if this is the bottom for Nio NYSE: NIO stock it might be. The price action has corrected significantly over the past 2 years and there are signs of bottoming once again. The caveat is that we’ve seen this stock try to bottom before and not do it so there is risk in the outlook.

The questions that need to be answered are what caused the implosion and why the stock might move higher. To answer the first question, the company is producing cars and ramping up production but failing to meet its very high expectations with no help from COVID, and the outlook soured.

As for the second, the company was able to beat even its lowered outlook for Q4 deliveries, and there are signs of COVID easing in China. Together, this has the outlook for Nio brightening, and the stock is ready to move higher. 

Nio Posts Record Deliveries For December 

Nio has been ramping production all year, as seen in the sales data. The company's deliveries in December were 15,815, which is up 50.8% versus last year, and it is among the EV market leaders in China in regard to growth. This is a record for the company, and Q4 sales are up 60% versus last year and FY deliveries are up nearly 35%.

Assuming December’s production level is sustained in the current quarter, deliveries could easily top 47,000 and produce growth near 85% versus last year. 

The factor moving the stock now is the performance relative to the company’s recently reduced guidance. Nio lowered its delivery target for Q4 in late December and beat it by more than 100 basis points. This is a slim margin of outperformance, but a sign of strength nonetheless and an indication that easing COVID-19 restrictions in China is having a positive impact on sales.

The Analysts Are Buying Nio Stock 

The analyst sentiment in Nio has held firm over the last year even as the price targets were cut. The Marketbeat.com consensus rating has been firm and steady and a Moderate Buy all year while the price target fell about 66%.

The takeaway here is the low price target, which was recently set, suggests the stock is fairly valued at current prices, while the consensus of $22.89 suggests more than 110% of the upside is available for new investors. The consensus is down from last year but hit bottom after the Q3 earnings release and has since begun to move higher. This should help support the stock soon and could turn into a tailwind if it develops into a longer-term trend. 


The institutions were selling Nio stock early in 2022 but quit going into Q4 and have yet to resume the trend. If they revert back to buying, it would be another tailwind for the market. As it is, the institutions own about 30% of the company.

The Technical Outlook: Nio Is At A Key Support Level 

The price action in Nio hit bottom in late October, coinciding with an important technical break out in 2020. This level is a key support level that, if broken, would open the door to a substantial decline. If, however, the market can establish a firm bottom at this level, the stock should bounce back to the $21 level sometime over the next few quarters (assuming results are as expected). 

Is This The Bottom For Nio Stock? 

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Should you invest $1,000 in NIO right now?

Before you consider NIO, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NIO wasn't on the list.

While NIO currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
NIO (NIO)
1.4434 of 5 stars
$5.74+5.7%N/A-3.17Hold$12.25
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


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