XPeng (XPEV) Surpasses Market Gains; Earnings Release Ahead

XPeng Inc. Sponsored ADR (XPEV) has shown notable stock performance with a +1.9% rise, outpacing major indices. Anticipation builds for its upcoming earnings announcement, with analysts predicting significant revenue growth, yet the company holds a Zacks Rank of #4, indicating sell pressure.

Date: 09-11-2024

AI Rating: 5

XPeng Inc. Sponsored ADR (XPEV) closed at $14.49, marking a +1.9% increase. This performance is considerably better than the S&P 500's 0.38% gain. Over the past month, XPEV has recorded a substantial 12.32% increase, outperforming the Auto-Tires-Trucks sector, which gained 11.97%, and the S&P 500's 4.9%.

Looking ahead, investors are keenly awaiting the company's financial performance set to be reported on November 19, 2024. The Zacks Consensus Estimates predict earnings of -$0.96 per share and revenue of $5.15 billion, indicating year-over-year growth of +42.86% for EPS and +20.08% for revenue.

However, it is important to note that the Zacks Consensus EPS estimate has recently shifted 1.32% lower, and XPeng currently has a Zacks Rank of #4, categorizing it as a 'Sell'. This suggests that while the revenue growth may look attractive, the negative EPS estimate revision could create bearish sentiment among investors.

The Automotive – Foreign industry, where XPeng operates, currently ranks in the bottom 29% of industries according to the Zacks Rank, which indicates relatively poor performance within this sector. This lower ranking can lead to increased caution from investors when it comes to XPEV's stock.

This report highlights the dichotomy between XPeng's strong stock performance relative to broader indices and its concerning EPS outlook. While past performance may buoy investor sentiment, the upcoming earnings results and their implications for future performance are paramount and could lead to increased volatility around the release date.

Stocks: XPEV