With neo i mean neo has seen a huge growth over the last year, they’ve gone from four dollars per share to over sixty dollars per share at some point. But if you look at the last week, or so unusually for neo they’ve had a little bit of a bad time with their stock price dropping over ten percent, which means it’s a great opportunity for potential investors to get in. So let’s talk a little bit more about neo stock and a few ideas of how to trade neo stock before earnings and after earnings overall i’m pretty bullish in neo stock right now, even more so after that recent fall in their stock price. That we’ve seen. Firstly, we’ve seen great vehicle delivery numbers for neo month after month in 2020. Overall, they delivered 36 hundred and twenty one vehicles, which was a hundred and eleven percent year over year growth rate. Then, if you look at just january alone of this year, they managed to deliver seven thousand two hundred and twenty five vehicles in that month, which was four times more than they delivered in january last year and, of course, these vehicle delivery releases i just spoke about – Are already priced into neo stock as they’ve been out for quite a while, but we can expect neo to keep reporting big growth numbers in vehicle deliveries month after month, especially when you look at the chinese electric vehicle market when new year’s situated and is literally expected To explode in growth over the next few years, although of course the electric vehicle industry and market in china is very competitive, but neo has been able to stay as a top dog out of the chinese electric vehicle companies.
So far, and the second reason why i am bullish on neo stock right now before their earnings is their financials. Even though right off the bat, no one is expecting amazing financials from neo. Actually, neo is not expected to be profitable, just yet we’re forecast for the earnings per share to be around negative 16 cents. If we look at the last two earnings releases, though, they’ve actually been able to go ahead and beat estimates from wall street shown here in this graph by the light blue bar effectively being less negative than the estimates of the dark blue bar, which could be a Sign that they may be estimates this time round two anyway, if you think about it, these low ball estimates for the financials is kind of a win win for investors. I think, because it really does give a lot of scope, that if we do see neo, post, less negative profits or maybe even break even then we could see a big jump in their stock price. In other words, expectations for neos financials are already so low that there isn’t much neo can do in order to disappoint on the financial front for investors. And thirdly, in my bullish argument for neo stock is you’ve got to look at the price targets set by wall street for neo stock and right now. Investment analysts surveyed by cnn business are putting a median 12 month price target on neo stock of about 68 dollars, which would be a 12 month return of 26 percent, with a majority of the analyst surveyed saying that neo stock is a buy right now and in My limited experience, i haven’t, really seen electric vehicle companies not hit their price targets set by wall street and, if anything, usually these forecasts are a bit conservative as we’ve seen, time and time again with tesla stock.
I mean you still have some analysts out there, betting that tesla stock is going to crash down to 67 in 12 months time. So i actually wouldn’t be surprised if we see neo stock go above and beyond that 68 median price target that we’re seeing over the next 12 months, especially with the positive trends we’re seeing in the chinese electric vehicle market. Fourthly, why i am so bullish on neo stock right now is just look at its market cap it’s sitting at around 85 billion dollars, it’s pretty much at that point where you could say: neo is too big to fail. A year ago, when neo was sitting at around one twelfth of that value at four dollars per share. Yes, i would have said it’s risky to invest in neo and it could easily drop a lot in value, but now neo has grown and it has such a large presence in china and it’s backed by a lot of investors. I think neo stock is extremely unlikely to have a large crash and it actually has a lot of legs to keep going up long term instead. So now, moving on to how am i looking to trade neo stock before earnings well i’m, looking to take full advantage of this current dip that we’re, seeing in neo stock price and i’m starting to dollar cost average interneo stock over the next week, or so before? Earnings, i think, there’s going to be a big chance.
We see a positive surprise in neo’s financials, which could set off an upward rally for the stock after earnings. Of course, this is just speculation on my end, but i really do believe in neo stock long term. So really, these short term movements in price don’t worry me too much. Instead, i just see any red days in neo stock price when it goes down as a benefit, as i can buy up more of neo stock for a cheaper price. Then, after earnings i won’t be as aggressively dollar cost averaging into neo stock, but instead i’ll just be topping my investment up every time i see a significant drop in neo stock price, so really i’m, not looking to do anything fancy when it comes to investing in Neo stock around earnings day, but instead i’m, just in it for the long term game. For me, this binary earnings event just gives me an opportunity to buy in before a potential upward rally. So there you have it a super, quick analysis of neo stock, as well as how i’m looking to invest in neo stock. Before and after that earnings day, if you found this video useful, then please give it a big thumbs up and also consider subscribing to my channel for more investing content like this. In addition, let me know in the comments down below what your strategy is for neo stock right now. Do you think neo stock is a buy and by the way, if you are looking to get involved with investing, then the investing app weeble will be giving you two free stocks when you deposit your first 100 just use the link down below in the description and Let me know what free stocks you get with.
That being said, thank you guys so much for watching.