Because this is really where the value of companies is created over time. Its prospects are closely associated with the increasing adoption of electrification in China’s auto industry. It's an integral part of the Zacks Rank and a critical part in effective stock evaluation. Also, by looking at the rate of this item, rather than the actual dollar value, it makes for easier comparisons across the industry and peers. A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. Growth Style - Learn more about the Growth Style. The financial health and growth prospects of NIO, demonstrate its potential to outperform the market. The longer-term perspective helps smooth out short-term events. Cash flow can be found on the cash flow statement. The TipRanks Smart Score performance is based on backtested results. Please read the full disclaimer here. The subsidies benefit Nio, not Tesla based on price limitations. Please note all regulatory considerations regarding the presentation of fees must be taken into account. So be sure to compare it to its group when comparing stocks in different industries. jumping in the Splash Zone and making some profits for yourself. If you’re looking for some potential stocks to consider buying use the following links to some of our recent articles. The Momentum Score takes all of this and more into account. Some of the items you'll see in this category might look very familiar, while other items might be quite new to some. Some negative signals were issued as well, and these may have some influence on the near short-term development. As the name suggests, it's calculated as sales divided by assets. As a point of reference, over the last 10 years, the median sales growth for the stocks in the S&P 500 was 14%. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. And the people buying Nio shares today are doing just that. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. Gambling. It takes the consensus sales estimate for the current fiscal year (F1) divided by the sales for the last completed fiscal year (F0) (actual if reported, the consensus if not). If the P/S ratio is 1, that means you're paying $1 for every $1 of sales the company makes. Moreover, when comparing stocks in different industries, it can become even more important to look at the relative measures, since different stocks in different industries have different values that are considered normal. While our testing has found that a P/S ratio of <2 is the optimum range for returns, be sure to compare this ratio to its respective industry. Is Walmart A Buy – As It Preps Its “Amazon Prime Killer?”, 4 Reasons The Market’s In For A Crazy Week, 700+ Point Market Turnaround – What Happened, 6 Things Affecting Your Portfolio This Week, 3 Reasons To Buy Facebook – And 1 To Wait. featured in The Global Fintech Index 2020 as the top Fintech company of the country. All users should speak with their financial advisor before buying or selling any securities. Importantly, NIO does not really manufacture its own cars. Recent price changes and earnings estimate revisions indicate this stock lacks momentum and would be a lackluster choice for momentum investors. Growing up in the 80's & 90's, Ryan saw his portfolio grow from $5,000 to nearly $30,000 - a 500% return for a kid who didn't even have his driver's license yet. And its rise has now led to several new car companies trying to follow Tesla in the electric vehicle (EV) space. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score. Then move to commercial vehicles like trucking. 3 Buy ratings, 3 Holds and 2 Sells have been assigned in the last three months. The company’s second volume manufactured EV, the ES6,a 5-seater high-performance premium electric SUV, was launched in 2018. The income number is listed on a company's Income Statement.
Volume is a useful item in many ways. Earnings estimate revisions are the most important factor influencing stocks prices. Here’s a picture of that beautiful $1.2 million vehicle…. This ratio essentially compares the P/E to its growth rate, thus, for many, telling a more complete story than just the P/E ratio alone.