Louis Navellier’s #1 Stock for 2022

On October 20, the man who recommended Google before anyone else will reveal his #1 stock pick for 2022 — for FREE — ticker symbol and all — in a special presentation.

Wed, October 20 at 4:00PM ET
 
 
 
 

WKHS Stock: Why Hard-Hit Workhorse Is Starting to Rev Up

Workhorse (NASDAQ:WKHS) is not giving up. After losing almost half its value last week, WKHS stock is starting to rev up on Monday. It turns out that there are two reasons for the comeback.

A Workhorse (WKHS) W-15 hybrid electric pickup truck on display at a branding event in Flatiron Plaza in New York.

Source: rblfmr / Shutterstock.com

Investors likely know that Workhorse is an electric vehicle startup promising to electrify last-mile delivery with its C-Series trucks. Although it has other customers, a big catalyst for shares was the coveted deal with the United States Postal Service. Last week, we learned that Workhorse lost that bid. Instead, the contract went to Oshkosh (NYSE:OSK).

In the wake of the news, many investors thought it was game over for WKHS stock. Today though, the company is hoping to turn the story around. So exactly is happening with Workhorse right now?

The first catalyst for Workhorse comes from earnings. Today, the company shared fourth-quarter and full-year 2020 results. At the heart of the enthusiasm is news that Q4 net income rose to $280.5 million, up from just $655,000 last year. Consensus estimates called for a net loss of $15.1 million. Net income for the year hit $69.8 million, up from a net loss of $37.2 million in 2019.

Sales rose to $652,000, up from $3,000 in the fourth quarter. Unfortunately, the revenue figure missed estimates for $1.2 million. For the full year, revenue came in at $1.4 million.

In many ways, it seems that the surprise profit gave WKHS stock bulls a jolt of support. However, there is one even bigger catalyst working for Workhorse today…

WKHS Stock Rises on USPS Comeback

Today, Workhorse told analysts that it is not going to give up the fight for the USPS contract. CEO Duane Hughes shared today that the company has a meeting with the U.S. Postal Service on Wednesday. There, executives will request additional information about the bid process.

Why does this matter? Although it is unclear just what sort of chance Workhorse has of flipping things in its favor, it seems investors are happy it is trying. That is because this contract is no small deal. Over the course of 10 years, it could be worth as much as $6 billion. This is because it calls on the supplier to produce and deliver between 50,000 and 165,000 Next Generation Delivery Vehicles (NGDVs) for the USPS.

So what should you do here? Keep a close eye on Workhorse and WKHS stock. Depending on how things go Wednesday, we could see shares rally again. And even if the USPS remains firm with its pick of Oshkosh, there may be reason to keep WKHS on your radar. The company stands to benefit in the long term from growing consumer adoption of EVs. Now Workhorse just needs to navigate its way out of this big pothole.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with InvestorPlace.com. 


Article printed from InvestorPlace Media, https://investorplace.com/2021/03/wkhs-stock-why-hard-hit-workhorse-is-starting-to-rev-up-usps-contract/.

©2021 InvestorPlace Media, LLC