The Nio stock price remains under pressure as investors wait for the upcoming financial results, which will provide more color about its performance. Nio shares were trading at $4.50 on Monday, down by over 5% from its highest level this month and 10% above its lowest point this year. So, what next for Nio stock this week?
Nio stock price forecast
I have been fairly bullish on Nio stock price in the past few months, as you can see here, here, and here.
These bullish forecasts have not worked out well as the stock has crashed by over 42% from its highest point in September last year.
I remain optimistic and expect the stock to surge in the coming days. On the daily chart, it has formed a double-bottom pattern at $4.04. This is one of the most bullish patterns in the market, and is characterized by two down peaks and a neckline, which, in this case, is at $4.50.
The stock has formed a falling wedge chart pattern, a popular bullish reversal sign. This pattern, which is shown in black, is made up of two falling and converging chart patterns.The upper side of this pattern connects the highest swings since October last year. At the same time, the lower trendline connects the lowest swings since November.
In most cases, a bullish breakout happens when the two lines are nearing their confluence level, which has already happened now.
The other bullish factor is that the Nio stock price has formed a bullish divergent pattern. This pattern happened as the Relative Strength Index (RSI) and the percentage price oscillator (PPO) rose as the stock remained under pressure.
Therefore, there is a likelihood that the Nio stock price will bounce back in the next few days. Such a rebound may see it jump to the next key resistance level at $5.35, the highest swing on December 9 of last year. This target is about 20% above the current level. A drop below the support at $4 will invalidate the bullish view.
Nio earnings ahead
This will be a big week for Nio stock as the company publishes its financial results. The average revenue estimate among analysts is that its revenue rose by 18% in the fourth quarter to 20 billion CNY. Its highest estimate is 29.56 billion, while the lower side is at 19.98 billion CNY.
If these estimates are accurate, then it means that the annual revenue for the company will be 68.4 billion yuan, a 23% annual increase. Its annual revenue for next year will be 97.62 billion yuan, up by 42.7% from last year.
On the positive side, the company is improving its losses per share. Its EPS is expected to come in at 2.36 yuan, an improvement from the 2.81 yuan it made a year earlier. Its annual loss per share for 2024 will be an improvement to 9.47 yuan and 7.61 yuan.
Analysts are also upbeat about the Nio stock price. The estimate is $6.10, up from the current $4.40.
The most recent delivery numbers showed that the company delivered 13,863 vehicles in January, a 37.9% increase from the same period last year. 7,951 vehicles were its NIO brand, while 5,912 were from the ONVO brand.
Nio delivered 31,138 vehicles in December, bringing the quarterly figures to 72,689 in the fourth quarter. It sold 221,970 vehicles in 2024, a 38% annual increase.
This growth means that the company is relatively cheaper than its business. It has a price-to-sales stands at 0.97, while its price-to-book ratio of 5.96. Its enterprise value to revenue ratio was 1.03.
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