Why Is Forza XI (FRZA) Stock Up 40% Today?

  • Forza XI (FRZA) is among the big movers in today’s market, surging more than 40%.
  • This comes as the company announced pre-order data for 50 of its electric catamarans.
  • Additionally, yesterday, the company reported that its first model has been sea-tested and is ready to go.
FRZA stock - Why Is Forza XI (FRZA) Stock Up 40% Today?

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One micro-cap stock that’s making big waves in the market today is Forza XI (NASDAQ:FRZA). This maker of electric boats has seen its valuation rocket 40% higher at the time of writing. This move in FRZA stock appears to be tied to some reservation data the company released today, outlining orders for 50 of the company’s FX1 Dual Console and FX1 Center Console models.

These pre-orders could bring in as much as $8.5 million in revenue. Accordingly, for a stock that’s now valued at a total market capitalization of only $26 million, the potential upside with this growth company could be huge. At least, the market seems to think so.

That’s partly because yesterday, Forza also reported that its FX1 catamaran had been sea-trialed and successfully launched late last week. This means that boats could be delivered to customers soon, bringing an immediate revenue boost to this company and improving its financial picture in short order. For those bullish on the future of electric boating, there are plenty of reasons to get excited about this company.

Why Is FRZA Stock Surging Today?

There is plenty of growth ahead for the electrification trend. Indeed, most investors focus on the EV movement. However, electric boats, scooters and planes are other high-growth segments that investors often forget about.

Forza’s unique boats not only look great but could be the future of boating for enthusiasts everywhere. Right now, the company has predicted strong demand, with Chairman Joseph Visconti noting, “Based on reservations over the past couple of months, I believe customer interest is strong, and marine enthusiasts and the industry as a whole are ready for marine electrification.”

Of course, how strong consumer demand continues to be is a big question. If a recession is in our future, consumer discretionary companies like Forza could come under pressure. That said, at this valuation, investors appear to be looking at this stock as a relatively high-upside bet. I have to admit, this company is now on my watchlist today after I looked at their product line. If anything, this is a super cool company to invest in. That’s reason enough for many investors to jump aboard.

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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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