I’ve been fortunate to have some big and fast winners in my 20 years as a professional investor, but the recent run in a small company called Workhorse Group (NASDAQ:WKHS) puts it near the top of the list.
I recommended it on May 1 when it closed at $2.74. Two months later, it traded as high as $20 — a gain of 7X.
Along the way, its market value has surged from $190 million to $1.3 billion.
Workhorse is a cool company that makes battery-powered electric vehicles (EVs) and delivery drones, and it is on the cusp of a potentially major catalyst.
That’s one reason it’s rocketed higher. But honestly, EVs are just blazing hot these days. The momentum crowd has jumped on board, as evidenced by the much-hyped IPO of Nikola (NASDAQ:NKLA) and a big run in Tesla (NASDAQ:TSLA).
So what’s an investor to do now …
Ten years ago, when they would interview me on Fox Business about electric vehicles, my co-hosts would make fun of me for having a “man crush” on Elon Musk.
I’m not sure that’s what I’d call it. But the man is a genius … even if a little crazy, too. And guess what? Tesla has gotten above $900 not one, but twice this year. And this last time it’s kept climbing to $1,000, and it nearly touched $1,100 today.
Now, would I buy Tesla at $1,000? No. It could be interesting on a pullback, but that’s a topic for another day.
The future of transportation will be one of the most fascinating stories to come out of the Roaring 2020s. The mass adoption of electric and autonomous vehicles will change the way we get around — as well as the look and feel of the highways and roads in our communities.
The fact that Tesla has been able to more than double so far in 2020 with all of the craziness going on in the stock market and the world is incredible. And Nikola’s performance has been just as intriguing.
Nikola is a recent IPO that many expect will be a major Tesla competitor — which is why it’s attracted so much investor attention recently. At its peak earlier this month, it had rallied nine-fold from its IPO price just a few days earlier!
But here’s the thing … the company has yet to generate ANY revenue, and it only has a prototype of its vehicle. All the while it’s currently valued at $24 billion. That’s crazy! It puts the company in the same atmosphere as Ford Motor (NYSE:F) and Fiat Chrysler (NYSE:FCAU).
I am not here today to suggest that you go invest in Nikola or Tesla. As a matter of fact, if you made money on the former, I would look to bank your profits soon.
I bring this up because Tesla and Nikola making headlines and attracting buyers highlights the huge potential for EVs in the coming years. Eventually, this money will find its way into larger, better positioned stocks …
Stocks like Workhorse Group.
Workhorse is also an all-electric vehicle manufacturer, so a lot of investors are looking at it as the “next big thing.” And they’re not wrong.
Unlike Nikola, this company does have revenue. And it also has far more going for it than a simple prototype of what it plans to create in the future. It’s not a “sexy” business so to speak, but it has massive upside potential this year and beyond.
Workhorse has a few things going for it right now. As a potential leader in last-mile electric vehicle delivery, it could certainly see its revenue soar in the next few years. Then there is the $6.3 billion United States Postal Service contract that is up for grabs in 2020. Even if Workhorse gets just a small portion of the contract, it would boost the stock by a large amount.
Plus, it has big-time growth in it’s future. After seeing a loss of $0.58 per share last year, the bottom line is projected to flip to a profit of $0.18 per share by 2022. And revenue should grow from $376,000 to $287 million over the same timeframe. That’s more than 760X growth in three years!
Add in a USPS contract and this stock is a possible 10-bagger and more before you know it.
Now, I don’t say this to get you to chase Workhorse’s stock here. It’s well above my buy limit. I’m just showing you what true growth looks like. Not a fad that could fall just as quickly as it rocketed to its heights.
And it all circles back to electric vehicles and the future of transportation. This hypergrowth trend isn’t going anywhere anytime soon, and it’s about to lead to trillions of dollars sloshing around the market.
Make you sure get in early … before the race really begins.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.
