Autos

Xpeng Earnings Preview, Plus a Look at EV Stocks

A very light schedule of companies reporting earnings is about all that remains until the March quarter ends and we begin to see more earnings results beginning around the second week of April.

Looking ahead, after markets close today, we are scheduled to receive earnings reports from Costco, Gap, Broadcom and Smith & Wesson. Before markets open on Friday, discount retailer Big Lots is set to report quarterly results.

Among the stocks that reported after markets closed Wednesday and before they reopened Thursday morning were Kroger, American Eagle Outfitters, Marvell Technology, Snowflake and Michaels.

Before markets open Monday just one electric vehicle (EV) maker is scheduled to report earnings reports, and none are scheduled to report Friday afternoon. After previewing Monday’s reporter, we’ll take a look at how the EVs stocks have held on after a wild ride in 2020.

Xpeng Inc. (NYSE: XPEV) came public in August of 2020, and the stock price had soared 240% by late November. As of the trading on Thursday, the stock had added about 39% since its August initial public offering.

Of the 10 analyst ratings on the stock, all but three are Buy and those three include one Sell rating and two Hold ratings. The consensus 12-month price target on the stock is $53.97, implying a potential upside of 44% to a recent price of around $30. The high price target is nearly $70 a share (from Morgan Stanley in late January), implying an upside of $40 a share, or 133%.

For the fourth quarter, analysts expect Xpeng to report a net loss per share of $0.12 on sales of about $412 million. For the full 2020 fiscal year, the net loss per share is estimated at $0.78 on sales of around $871 million. Xpeng is forecast to cut its fiscal year 2021 loss per share to $0.44 on sales of $2.15 billion.

From its 52-week high of $74.50, Xpeng’s share price was down nearly 60% in late February, and the ratio of its enterprise value to sales was 38.4.

Here’s a quick look at how other EV stocks have done since Xpeng’s IPO in August.

Tesla Inc. (NASDAQ: TSLA) has added about 80% to its share price and trades at around $630 a share currently. In late January, Tesla stock traded up about 140% from its August level, and by late February traded at nearly 30% below its 52-week high. Tesla’s enterprise value to sales ratio is around 19.

Nio Ltd. (NYSE: NIO) traded recently at around $41 a share, about 39% below its 52-week high but still more than double its August 2020 level. It is the best performing of the EV stocks since Xpeng’s IPO. The carmaker’s enterprise value to sales ratio is around 33.

Workhorse Group Inc. (NASDAQ: WKHS), which came public just a few weeks before Xpeng, traded recently at around $14 a share, around 67% below its 52-week high and about 16% below its August price. The company’s enterprise value to sales ratio is more than 1,700, primarily the result of virtually no revenue yet.

Li Auto Inc. (NASDAQ: LI) also came public shortly before Xpeng. The stock currently trades at around $23, an increase of around 19% since August. In late November, the shares were up 127%, but they now trade at around 52% below their 52-week high. The enterprise value to sales ratio is around 21.

Electrameccanica Vehicles Corp. (NASDAQ: SOLO) stock, which also began trading publicly in August, peaked in late November with a gain of 274%. At a current price of around $5.50 a share, the stock trades about 60% below its all-time high, although it still enjoys a gain of around 90% to its IPO price. The company’s enterprise value to sales ratio is around 463.

Kandi Technologies Group Inc. (NASDAQ: KNDI) stock reached its highest level in early February, when it traded nearly 150% above its August level. Since then the shares have dropped to a loss of nearly 7% since August. At a recent price of around $6.20, the stock traded about 64% below its 52-week high, and the company’s enterprise value to sales ratio is a group-leading 4.9.

Nikola Corp. (NASDAQ: NKLA) had given away all the 140% share price increase it got from its June IPO by the time of Xpeng’s August IPO. Since then, the stock trades down about 60% and, at a recent price of around $15.85, about 83% below its post-IPO high. The company’s enterprise value to sales ratio is a mind-boggling 36,167.