Stocks are soaring, nearly across the board, today. Accordingly, for investors in electric vehicle (EV) maker XPeng (NYSE:XPEV), today’s 2% move higher in XPEV stock may easily be brushed off since that’s almost exactly what the major exchanges are up by currently.
Much of this bullish move across the entire market comes from a sense of calm that appears to be setting in on the banking front. With potential contagion fears off and on on a daily basis, that’s not really a good reason to buy or sell stocks. But it’s what the market is working with right now.
In the case of XPeng, the company has a big catalyst of its own investors are focusing on. The company will report earnings tomorrow, which investors will be closely watching. That’s because Peng’s results can also indicate Chinese demand for other major automakers.
Let’s dive into what the experts expect from these earnings tomorrow.
Where Will XPEV Stock Head Following Earnings Tomorrow?
Expectations for this Chinese EV maker have fallen over the past year. This stock is down considerably from its peak, like all EV stocks. However, XPeng’s unique focus on the Chinese market has also brought in other geopolitical risks. This has led to a stock price that has lagged behind other global peers.
Accordingly, consensus estimates point to a rather low bar for XPeng this coming quarter. The average analyst estimate for XPeng’s earnings per share is -35 cents, with revenue coming in at $744.4 million. Those numbers both represent year-over-year declines of 59% and 42%, respectively.
Plenty of undercurrents are driving this negative sentiment in the stock. A pricing war in China, and mixed earnings from other EV makers, have signaled it’s probably best to err on the side of being negative right now.
That said, should XPeng pull out an earnings beat, this stock could have more upside potential. I view XPEV stock as a coiled spring right now. That said, this stock is probably too high-risk for most investors, especially in these uncertain times.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.