Niu Technologies: Is This Electric Vehicle Stock Still a Buy?

: NIU | Niu Technologies News, Ratings, and Charts

NIU – Rising coronavirus infections have been driving people away from using public transportation, with social distancing in mind. With more people seeking private transportation but for whom a car may be too expensive, Niu Technologies’ (NIU) electric scooters have become a popular choice in the Chinese and international markets. We believe NIU’s stock is set to extend its strong performance this year with increasing demand from domestic and international markets.

Based in the People’s Republic of China, Niu Technologies (NIU) is engaged in designing, manufacturing, and selling smart electric-scooters, scooter accessories, lifestyle accessories, and performance upgrade components such as wheels and brakes. The company offers RQi and TQi series urban commuter electric motorcycles, professional mountain, and road bicycles.

The COVID-19 pandemic created a deep fear among the public of using public transportation. NIU’s electric scooters allow riders to maintain a safe social distance from others. As such, they have been witnessing a significant surge in demand both Chinese and  international markets. In addition to benefiting from favorable policies supporting electric vehicles and battery technology, the company’s launch of Gova products in the Indonesia market should drive its sales growth.

NIU’s retail network expansion and its solid marketing strategy have allowed it to gain 345.9% over the past year. This impressive performance combined with several other factors has helped NIU earn a “Buy” rating in our proprietary rating system.

Here is how our proprietary POWR Ratings system evaluates NIU:

Trade Grade: A

NIU is currently trading above its 50-day and 200-day moving averages of $30.94 and $20.46, respectively, indicating that the stock is in an uptrend. In fact, the stock has gained 28.8% over the past three months, reflecting  solid short-term bullishness.

NIU’s revenue increased 36.7% year-over-year to RMB 894.5 million in the third quarter ended September 30, 2020. The company’s e-scooter sales revenues from international markets were RMB 59.6 million, representing an increase of 35.2%, and  7.4% of total e-scooter revenues globally. Its gross profit rose 28.8% from the year-ago value to RMB 145.23 million over this period.

The company recently released its e-scooter sales volume results for the fourth quarter of 2020. It sold 149,705 e-scooters, representing a 40.9% year-over-year growth. The increase in sales is mainly attributable to a demand recovery and NIU’s expanding global footprint.

In December, NIU  joined hands with Aurora Mobile Limited to improve efficiency and to   optimize its customers’ user experience. This collaboration will help NIU gain more insight into its users’ needs and hopefully help it  maximize value creation.

Buy & Hold Grade: B

In terms of proximity to its 52-week high, which is a key factor that our Buy & Hold Grade considers, , NIU is  well positioned. The stock is currently trading just 8.5% below its 52-week high of $41.51, which it hit on January 12. This bullishness can be attributed to consistent developments, a broad product portfolio, continued advancement in the international market, and the rapid expansions made by the company.

Peer Grade: B

NIU is currently ranked #25  of 52 stocks in the Technology – Hardware industry. Other popular stocks in this industry are Roku, Inc. (ROKU), Dell Technologies Inc. (DELL) and Lenovo Group Limited (LNVGY)

DELL, LNVGY, and ROKU gained 46.8%, 53.4%, and 208.2% respectively, over the past year. This compares to NIU’s 345.9% returns over this period.

Industry Rank: B

The Technology – Hardware industry is ranked #29  of  123 StockNews.com industries. The companies in this industry manufacture and sell smart e-scooters, personal computers, cameras, smart phones printers, monitors, keyboards, mice, and webcams, as well as ATMs, self-service kiosks, point-of-sale terminals, and biometric readers.

Although  the pandemic initially disrupted global supply chains and production operations, the demand for products of companies in this industry increased as stay-at-home orders pushed people to adapt to  living and learning virtually. Also, the demand for e-scooters rose as more people began to prefer personal vehicles over public transportation in an effort to  ensure proper social distancing amid the pandemic.

Overall POWR Rating: A (Strong Buy)

NIU is rated “Buy” due to its impressive financials and short- and long-term bullishness, and underlying industry strength as determined by the four components of our overall POWR Rating.

Bottom Line

As the shift toward green energy is gathering momentum, NIU is in a favorable position to outperform the broader market in 2021 despite gaining 345.9% over the past year. The company’s strong e-scooter sales in the fourth quarter and investors’ bullish sentiment about the EV market should drive its shares  higher this year. Hence, it may be wise to bet on the stock right now.

The consensus EPS estimate of $0.06 for the quarter ending March 31, 2021 indicates a 250% improvement year-over-year. The consensus revenue estimate of $79.04 million for the next quarter represents a 137.5% increase from the same period last year.

Want More Great Investing Ideas?

“MUST OWN” Growth Stocks for 2021

Is This ANOTHER Stock Market Bubble?

7 Best ETFs for the NEXT Bull Market

5 WINNING Stocks Chart Patterns


NIU shares were trading at $43.27 per share on Tuesday afternoon, up $5.28 (+13.90%). Year-to-date, NIU has gained 54.26%, versus a 1.37% rise in the benchmark S&P 500 index during the same period.


About the Author: Imon Ghosh


Imon is an investment analyst and journalist with an enthusiasm for financial research and writing. She began her career at Kantar IMRB, a leading market research and consumer consulting organization. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NIUGet RatingGet RatingGet Rating
ROKUGet RatingGet RatingGet Rating
DELLGet RatingGet RatingGet Rating
LNVGYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

2022 Stock Market Outlook

The stock market (SPY) has continued on a bullish path in 2021. Will that continue in 2022? And what could happen to awaken the bear market from hibernation? 40 year investment veteran Steve Reitmeister explores this and more in this early edition of his 2022 Stock Market Outlook. Read on for full details below...

:  |  News, Ratings, and Charts

3 Highly Profitable Tech Stocks to Buy

Aside from a recent fall, tech stocks have shown bullish momentum since May. Whether or not this momentum continues, making sure you're invested in highly profitable tech stocks can provide your portfolio the potential for strong returns. That's why investors should consider high profit tech stocks such as Cadence Design Systems, Inc. (CDNS), KLA Corporation (KLAC), and Skyworks Solutions, Inc. (SWKS).

:  |  News, Ratings, and Charts

How to Turn Low Priced Stocks into BIG Winners?

Some investors are into growth stocks...some prefer value stocks while others are into momentum, income, chart patterns, insider trading and more. But one area that most investors agree upon is the great appeal in buying low priced stocks. Like those under $10 given the potential that prices soar and you easily beat the stock market (SPY). Read on to discover our brand new strategy for selecting low priced stocks that has led to a surprising +62.88% average annual return. Get the rest below...

:  |  News, Ratings, and Charts

3 Growth Stocks You Can Buy at a Reasonable Price

Even with growth stocks falling last week, investors are still pouring money into companies with strong growth potential. When you add in a value component, you get the best of both worlds. That's why investors should consider growth at a reasonable price stocks such as Westlake Chemical Corporation (WLK), ManpowerGroup (MAN), AutoNation, Inc. (AN).

:  |  News, Ratings, and Charts

How to Turn Low Priced Stocks into BIG Winners?

Some investors are into growth stocks...some prefer value stocks while others are into momentum, income, chart patterns, insider trading and more. But one area that most investors agree upon is the great appeal in buying low priced stocks. Like those under $10 given the potential that prices soar and you easily beat the stock market (SPY). Read on to discover our brand new strategy for selecting low priced stocks that has led to a surprising +62.88% average annual return. Get the rest below...

Read More Stories

More Niu Technologies (NIU) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NIU News