Rivian Ramps Up Production: Is Wall Street Overlooking the EV Maker’s Potential?

I have never been much for tracking EPS and Revs as the defining decision for whether or not to own a stock.

Sometimes consumer instinct, even if that is in contrast to earnings, is the better judgment to use.

For example, Amazon (NASDAQ:) took years to turn a profit, even though it was obvious to us that more and more people were using it to purchase EVERYTHING for the most part.

Lately, I see more and more Rivians on the road in our town.

Is this as seductive as Amazon?

No.

But does that mean at $16 a share compared to Tesla’s (NASDAQ:) $220 a share price, Rivian (NASDAQ:) is sexy?

Yes.

Some stats:

• On July 2nd, Rivian announced production and delivery totals for the quarter ending June 30, 2024.
• The company produced 9,612 vehicles at its manufacturing facility in Normal, Illinois and delivered 13,790 vehicles during the same period.
• Production and delivery results during the second quarter of 2024 were in line with Rivian’s expectations.
• For the full year 2024, management is reaffirming guidance for the annual production of 57,000 total vehicles.
• The company also announced that on August 6th, after market close, it will release its second quarter 2024 financial results.
• For Rivian Automotive, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company’s earnings prospects.
• This has resulted in an Earnings ESP of -10.68%.
• On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Rivian Automotive will beat the consensus EPS estimate.

Nonetheless, Zacks report has Rivian ranked as a number 2 buy.

They see this stock at 100 by 2026.

I am not sure we can wait until August 7th to buy the stock.

However, for now, we are looking at the charts before making any firm commitment or recommendation.

On the daily chart, the 200-DMA is above the 50-DMA putting RIVN in an accumulation phase.

The July 6-month calendar range high has turned out to be good resistance.

The 50-DMA is perfectly aligned with the July 6-month calendar range low to give investors a meaningful risk parameter.

Real Motion had a mean reversion sell, but-

The moving averages are stacked bullish!

The Leadership indicator has Rivian neck in neck with the benchmark.

We would love to see Rivian trade closer to 13.50.

However, if that does not happen, there is a clean breakout coming and August 6th is only a week away.

ETF Summary

• S&P 500 (SPY) 540 support
• Russell 2000 (IWM) 217 support 227 resistance
• Dow (DIA) 400 support
• Nasdaq (QQQ) Broke support at 463 ahead of earnings
• Regional banks (KRE) 54 now support with 60 next level to watch
• Semiconductors (SMH) 230 important support failed ahead of earnings
• Transportation (IYT) 64.10 support 67 resistance
• Biotechnology (IBB) 146 support 150 resistance
• Retail (XRT) 75 support 77.50 resistance cleared-one to watch
• iShares iBoxx Hi Yd Cor Bond ETF (HYG) 78.00 support