XPeng Motors (NYSE: XPEV) closed trading on Friday, November 26 −3.26 (6.00%) by market close, although the stock was up +3.76 (7.94%) over the course of the trading week.
Despite the fact that the stock has been a moderate performer in the overall market, the technical picture appears to be positive in both the medium and short-term time frames. This is bolstered by the fact that the company reported a strong set of earnings on November 24, contributing to improved overall market sentiment for the EV stock.
Recently, XPEV has been trading in a broad range between $43.83 and $54.99, which is quite significant. It is now changing hands in the center of this range, which suggests that stock trading investors may find some resistance above the current price.
Xpeng chart analysis
XPEV’s long- and short-term trends are favorable, and the stock is presently trading in the higher half of its 52-week trading range, which shows that XPEV’s performance is in line with the S&P 500 Index’s.
The volume has increased significantly in the last couple of days, which is exactly what you want to see during a strong upward movement. In addition, XPEV presently offers a reasonable setup pattern. At $48.39, traders might use a support zone to put a buy-stop order if the price drops below this level.
Furthermore, we have seen that significant players have shown an interest in XPEV in the previous couple of days, which is a positive indicator on top of a pocket pivot signal spotted just a short time ago, which is another encouraging indicator.
A Pocket Pivot signal is a price/accumulation pattern that occurs when the price rises with a volume greater than the most significant down volume recorded in the preceding ten days.
The view from Wall street
Five Wall Street analysts projected an average price forecast of $73, with a high of $92 and a low of $56 for XPeng over 12 months. The average price estimate implies a 43.11% upside from the most recent price of $51.01.
Notably, the average price target is higher than the highest price target the analyst had given for the stock just three weeks ago.
Furthermore, based on the price projections of five TipRanks experts’ stock recommendations for XPEV over the last three months, all five analysts advise to ‘Buy,’ while none favor ‘Hold,’ or ‘Sell.‘
Based on their recommendations, the consensus rating for XPEV stock is a ‘Strong Buy,’ with a 43.11% upside, making it an attractive buy for both traders and investors, as even their lowest price projection of $55 is greater than Xpengs current price of $51.01.
XPENG positive earnings results
Indeed, the earnings report issued by XPEV on Wednesday last week was positive. Even though earnings per share (EPS) fell short of estimates, sales exceeded forecasts by a wide margin, coming in at $847.4 million.
On top of this, XPeng boosted their outlook for the fourth quarter. The sales outlook for the fourth quarter has been raised from $1.1 billion to $1.7 billion.
According to XPeng, the firm intends to deliver 35,500 cars in the fourth quarter, which is the midpoint of the targeted range for the company. When measured in delivery numbers, this would represent a significant increase of about 200% each year, consistent with the 230% annual growth rate recorded in October.
While delivery numbers are reaching new highs and expanding rapidly, XPeng is also increasing its margin, which means it is making more money with each car delivered. For instance, a two-point percentage gain from the previous quarter and a significant improvement over a year ago brought gross margins in the third quarter to 14%.
It’s worth mentioning that, given the current positive market sentiment surrounding the Chinese manufacturer of electric vehicles, we have included the stock as one of our three EV stocks to consider for double-digit gains in the next 12 months.
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