Tesla (TSLA) rival in electric vehicles Zeekr Intelligent Technology (ZK) is Thursday’s IBD 50 Growth Stock To Watch pick. The China-based EV maker has recovered from a harsh earnings sell-off and its stock broke out of a base Thursday.
Zeekr holds the No. 5 spot out of 35 stocks in the auto manufacturers sector, which ranks No. 54 out of the 197 groups covered by Investor Business Daily. Tesla stock holds the top spot.
Zeekr began delivering electric vehicles in October 2021.
On Dec. 1, Zeekr announced it delivered 27,011 vehicles in November, or a 106% year-over-year increase. Investors are awaiting word on Tesla’s fourth-quarter deliveries next week.
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China Stock Hits Buy Point And New High
Shares powered up more than 7% Thursday before easing and breaking out in an erratic base with a 31.50 buy point. The EV stock is in the 5% buy zone up to 33.08.
Zeekr stock also hit an all-time high Thursday, topping its previous record reached the session following its initial public offering on May 10.
The electric vehicle stock has made a heroic recovery from a 23.7% drop after the company reported third-quarter results on Nov. 14. Shares have climbed around 58% from the Nov. 15 low.
Its relative strength line is also on a steep upward incline after mid-November lows. And its IBD Relative Strength Rating has bolstered to 91 from 60 four weeks ago.
Electric Vehicle Maker’s Deliveries Pop
Its November deliveries came in at 27,011 for a 106% jump over the prior year. As a result, Zeekr reported a lower-than-expected loss for the third quarter on Nov. 14 but missed sales estimates.
Zeekr delivered 55,003 vehicles in the third quarter of 2024, or a 51% year-over-year increase. Gross margin slid to 16.0% from 16.3% a year ago. Its sales growth has slowed to 36% from 63% over the last three quarters.
The EV maker continues to post losses, but looks to be improving in 2024 and 2025.
Zeekr’s Accumulation/Distribution Rating of B indicates fairly heavy institutional buying over the last 13 weeks. And Up/Down Volume Ratio of 1.2 shows positive demand for Zeekr stock over the last 50 days.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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