NIO Inc. (NYSE: NIO)
Nio’s monthly deliveries are up over 66% compared to this time last year and are continuing the trend of year over year growth that it’s been seeing for the past two years. Having the base business continue to grow is incredibly important as this is the basis that sets its valuation multiples, which are sitting incredibly low at about a 0.7 Price to Sales ratio right now.
Nio’s Trailing Twelve Month earnings growth alongside China’s incredible electric vehicle demand shows it’s more than capable of meeting its future EPS growth estimates which are sitting at about 10% for the coming year.
We put Nio as medium risk, high reward and have a Buy rating with a +10% one year price forecast. The current consensus rating is a Buy with a +53% upside over the next year.
Nokia Oyj (NYSE: NOK)
Down over 30% in the past month, Nokia has been facing industry wide headwinds that have seen investors shy away from massive valuation multiples.
NOK still sits at a price to sales about 2.2, but with projected revenue growth of 63% it gives the stock a great PSG ratio of 0.03. At these growth rates it implies there is less than 2 years of growth built into the price right now. They have an order backlog of about $3B right now and they have beat or met all 4 of their last earnings calls.
We put Nokia as a medium risk, medium reward investment and our rating is a Hold with a +4% one year upside. The consensus rating is a Strong Buy with a +63% one year forecast.
Topcis: NIO stock analysis and price forecast, NOK stock projection
