Knowing facts before you bet on it

Rivian Automotive (Rivn) has recently been one of the most sought stocks on Zacks.com. Perhaps you would like to see some of the facts that could affect the performance of the stock at short notice.

The shares of a manufacturer of motor vehicles and passenger vehicles have returned +9.4% in the past month compared to the changes in the Zack S&P 500 Composite -0.7%. The Zack's automotive – domestic industry, which includes Rivian Automotive, has increased by 6.9% during this period. Now the main question is: where could the inventory be directed at short notice?

While media publications or rumors about a significant change in the business prospects of a company usually carry out its shares as a “trend” and lead to an immediate change in price, there are always some basic facts that ultimately dominate the purchase and hate decision finding.

Instead of concentrating on anything else, we prioritize the evaluation of the change in the profit projection of a company at Zacks. This is due to the fact that we believe that the current value for its shares is determined by the cash value of his future profit current.

We essentially take a look at how analysts that cover the shares reveal their profit estimates in order to reflect the effects of the latest business trends. And if the profit estimates for a company rise, the current value for its shares increases. A higher atmosphere to be used than the current market price gives investors the interest for buying the share, which leads at a higher price. For this reason, empirical research shows a strong correlation between trends in the revisions of the yield estimate and short -term share price movements.

For the current quarter, Rivian Automotive is expected to achieve a loss of $ 0.80 per share, which indicates a change of +32.8% compared to the previous year. The Zacks Consensus estimate has changed +0.9% in the last 30 days.

The consensus assessment of $ 2,87 for the current financial year shows a change of +29%compared to the previous year. This estimate has changed by -0.5% in the last 30 days.

For the next financial year, the consensus assessment of -2.12 points to a change of +26.2%, which is expected by Rivian Automotive a year ago. In the past month the estimate has changed +0.4%.

With an impressive external, tested success balance sheet is our proprietary stock assessment tool and the Zacks-rank-rank-a more cozy indicator for the short-term price-performance of a share, since it effectively uses the power of the profit assessment revisions. The size of the recent change in the consensus estimate and three other factors in connection with the profit estimates led to a Zacks rank 4 (sale) for Rivian Automotive.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for RIVN _12MonthepScharturl

While profit growth is probably the most superior indicator of a company's financial health, nothing happens than such if a company cannot increase its income. After all, it is almost impossible for a company to increase its income over a longer period of time without increasing its income. It is therefore important to know the potential sales growth of a company.

For Rivian Automotive, consensus sales for the current quarter of $ 1.02 billion shows a change of -15.1%compared to the previous year. For the current and next financial years, estimates of 5.46 billion US dollars and 7.93 billion US dollars +9.8% or +45.3% make changes.

Rivian Automotive reported sales of $ 1.73 billion in the last quarter, which corresponds to a change of +31.9%compared to the previous year. EPS of -0.52 USD for the same period comparable to -1.36 USD a year ago.

Compared to the Zacks Consensus estimate of 1.43 billion US dollars, the registered income is a surprise of +21.5%. The EPS surprise was +21.21%.

In the last four quarters, the company has only exceeded the EPS estimates once. The company led the consensus sales estimates twice during this period.

No investment decision can be efficient without taking into account the evaluation of a share. Whether the current price of a share rightly reflects the internal value of the underlying business and the growth prospects of the company is an essential determinant for future price -performance.

During the comparison of the current values of the evaluation advantages of a company, such as price-to-profit (P/E), Price-to-Sales (P/S) and Price-to-Cash-Flow (P/CF), with its own historical values, to determine whether its shares are rather evaluated, overvalued or undervalued, the relative position is comparable to prices for the relative position.

The Zacks Value Style Score (part of the Zacks Style Scores Systems), which pays attention to the grade of stocks from A to F both traditional and unconventional valuation metrics (AA is better than a C; and so on) is rather helpful to identify whether a share is overrated, legally valued or temporarily accommodated.

Rivian Automotive is evaluated on this front F, which points out that it is with his colleagues with a bonus. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and a lot of other information about Zacks.com could help determine whether it is worth paying attention to the Rivian Automotive market or not. However, his Zack's rank # 4 suggests that it affects the wider market below average at short notice.

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Rivian Automotive, Inc. (RIVN): Report on free stock analysis

This article was originally published in Zack's Investment Research (Zacks.com).

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