Trading in bear markets is always harder so you might want to avoid these stocks if you are not a veteran. Since this share has a negative outlook we recommend looking for other projects instead to build a portfolio. Our Ai stock analyst implies that there will be a negative trend in the future and the WKHS shares are not a good investment for making money. Currently there seems to be a trend where stocks in the Consumer Cyclical Manufacturing sector(s) are not very popular in this period. According to present data Workhorse Group's WKHS shares and potentially its market environment have been in bearish cycle last 12 months (if exists). Recommendations: Buy or sell Workhorse Group stock? Wall Street Stock Market & Finance report, prediction for the future: You'll find the Workhorse Group share forecasts, stock quote and buy / sell signals below. Real Estate and Housing Market Forecast.Mark Hake runs the Total Yield Value Guide which you can review here. Hake did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Therefore, given that WKHS stock looks overvalued, it might be best to wait on seeing how its earnings turn out over the next several quarters. The magazine also noted that the contract is “subject to various production and delivery conditions.” That could be one reason why analysts are still somewhat hesitant to raise their earnings and price targets. This is just 5% above today’s price.īarron’s noted that the Pride Group order seems to be for substantially more trucks than its own fleet. And six analysts surveyed by Yahoo! Finance have a consensus price target of $25. Moreover, five analysts surveyed by have an average price target of just $24 per share. Workhorse is trading today at just under $23. MarketBeat shows that their average target is $19.57 per share from eight analysts. Analysts who cover the stock have valuations below today’s price. I am not the only one who thinks WKHS stock is trading too high. In short, WKHS stock is clearly fully valued. That implies a high degree of variance, risk and it will likely be subject to change. However, that puts it at 10.75x earnings but for five years in the future. It is not until 2025, with a forecast EPS of $2.21, that the stock has a reasonable valuation. That still makes it worth 74x earnings for 2023. In fact, analysts don’t expect meaningful profits until 2023 when it could make 32 cents per share. More importantly, the company is still forecast to lose money this year. There is still no word as to when the government will make that decision.īased on analysts’ estimates today, WKHS stock trades for 20.7x sales for 2021. However, nothing will compare with the effect that winning the Postal Service contract will have, since it is so large at $6.3 billion. However, in a sense, it already is, since analysts expect to see large growth, especially if the Postal Service contract comes through.įor example, four months earlier Workhorse had signed a technology agreement with Hitachi America and Hitachi Capital America Corp. Therefore, it is possible the contract may not already be included in analysts’ estimates already. This is pretty significant, especially if you consider that the company is only expected to make $138.6 million in sales during 2021.Īccording to the newspaper, the Pride order is expected to be completed in batches, with initial delivery slated for July. Workhorse’s CFO, Steve Shrader, said the order was worth $500 million, according to the Cincinnati Business Courier. 7 Stocks to Buy as the Biden Presidency Begins.There was no dollar value on the order, but it was for 6,320 C-Series all-electric delivery vehicles. Pride Group is a large Canadian and U.S.-based, privately held company with businesses in transportation equipment retail, wholesale, rental, leasing and logistics. This is despite the recent news that it won a large purchase order contract from Pride Group Enterprises. The problem with Workhorse right now is that the stock looks to be fully valued. However, in the last six months, WKHS stock has done well, up 42%. In the past month, Workhorse stock is up 10%. That contact could be worth as much as $6.3 billion and will be a company maker. Postal Service contract, the stock won’t move much. I based this on the fact that until the company wins the large U.S.
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