This IBD 50 China Stock Climbs Back 58%, Hits Buy Point

Tesla (TSLA) rival successful electrical vehicles Zeekr Intelligent Technology (ZK) is Thursday's IBD 50 Growth Stock To Watch pick. The China-based EV shaper has recovered from a harsh net sell-off and its banal broke retired of a basal Thursday.

Zeekr holds the No. 5 spot retired of 35 stocks successful the car manufacturers sector, which ranks No. 54 retired of the 197 groups covered by Investor Business Daily. Tesla banal holds the apical spot.

Zeekr began delivering electrical vehicles successful October 2021.

On Dec. 1, Zeekr announced it delivered 27,011 vehicles successful November, oregon a 106% year-over-year increase. Investors are awaiting connection connected Tesla's fourth-quarter deliveries next week.

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China Stock Hits Buy Point And New High

Shares powered up much than 7% Thursday earlier easing and breaking retired successful an erratic basal with a 31.50 buy point. The EV banal is successful the 5% bargain portion up to 33.08.

Zeekr banal besides deed an all-time precocious Thursday, topping its erstwhile grounds reached the league pursuing its archetypal nationalist offering connected May 10.

The electrical conveyance banal has made a heroic betterment from a 23.7% driblet aft the institution reported third-quarter results connected Nov. 14. Shares person climbed astir 58% from the Nov. 15 low.

Its relative spot line is besides connected a steep upward incline aft mid-November lows. And its IBD Relative Strength Rating has bolstered to 91 from 60 4 weeks ago.

Electric Vehicle Maker's Deliveries Pop

Its November deliveries came successful astatine 27,011 for a 106% leap implicit the anterior year. As a result, Zeekr reported a lower-than-expected nonaccomplishment for the 3rd 4th connected Nov. 14 but missed income estimates.

Zeekr delivered 55,003 vehicles successful the 3rd 4th of 2024, oregon a 51% year-over-year increase. Gross borderline slid to 16.0% from 16.3% a twelvemonth ago. Its income maturation has slowed to 36% from 63% implicit the past 3 quarters.

The EV shaper continues to station losses, but looks to beryllium improving successful 2024 and 2025.

Zeekr's Accumulation/Distribution Rating of B indicates reasonably dense organization buying implicit the past 13 weeks. And Up/Down Volume Ratio of 1.2 shows affirmative request for Zeekr banal implicit the past 50 days.

Follow Kimberley Koenig for much banal marketplace quality connected X/Twitter @IBD_KKoenig.

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