Workhorse Group Making A Splash!
Shares Rally Providing More Than 33% In Two Days!

by Ian Harvey
October 23, 2020

Share

Workhorse Group stock is incredibly volatile – rallying and then falling more than 30% twice in the past month. There are two obvious ways to play this stock using options by basing the trade around.....

Stock Options Made Easy “Armchair Trader Members” have already made 33% potential profit on this trade, which was executed on Wednesday, October 21, 2020.

How high will the stock trade? 


Workhorse Group Inc (NASDAQ: WKHS)

There seems to be plenty of confliction between analysts, traders and researchers as to the direction that this stock is headed.

Workhorse Group stock is incredibly volatile – rallying and then falling more than 30% twice in the past month. There are two obvious ways to play this stock using options by basing the trade around.....

.....short-term action – even this is fairly predictable at this stage, as it moves fast in both directions but respects the important levels on the charts, or

.....take a longer-term view and wait for the stock price to settle down somewhat.

This stock has the ability to rally to great heights; such as, in September it rallied 90% to an all-time high before giving almost all of the gains back.

Workhorse burst onto the electric vehicle (EV) market scene this year after seeing the success of Tesla (NASDAQ:TSLA).

Workhorse is expecting to do this with electrified trucks. In essence, this is a concept in production not out in the market yet.

Let’s Have A Look At The Recommendation…..

……that was executed by “Earnings Predictions Members” on Wednesday, October 21, 2020

..…..and find out why we have a call options trade on Snap shares.

I have not included the actual recommendation provided to members as this would be an unfair situation.....if you wish to participate in this trade and others like it......CLICK HERE.

YOU NEED TO BE IN TO PROFIT!

“EV stocks have been among the best-performing consumer stocks this year. Many are up several hundreds of percentage points since the beginning of the year and the gains have only just begun. It’s easy to see the potential in EV (electric vehicle) companies, with carbon emissions a major environmental concern worldwide and numerous financial incentives for electric car buyers.

With EV accounting for only 2.6% of global sales this is more than just a consumer trend we are talking about. In terms of technology and its impact on society, this is a secular change. Eventually, most cars and trucks will be EV and, to some extent, autonomous. What this means for investors is a multi-billion multi-decade growth opportunity.

EV upstart Workhorse Group Inc (NASDAQ: WKHS) has made big headlines earlier this year when it went public. Workhorse Group’s flagship line is in production with new models on the way which will continue to reflect increased price action.

Workhorse Group’s flagship line is the C-Series of last-mile delivery trucks. The company is manufacturing both the 650 and 1000 models, named for the carrying capacity, and expected to dominate the industry. Over the past year, the company has garnered approvals from all 50 states making it the only EV delivery vehicle licenses for operation nationwide. That’s important for any EV fleet with a nationwide presence.

Impressively, shares had been up as much as 58% in September. The stock also managed to finish the month up nearly 40%. But October has proven a bumpier ride.

Workhorse shares are off 12% since Oct. 1 and 27% beneath their late September highs. This past week, WKHS further stressed the stock market is made up of individual companies whose shares are always at risk of further decorrelation.

This pullback certainly provides a nice entry point for this options trade.

Following last week’s volatile fallout, Workhorse could be forming a more durable and constructive high-level double-bottom, or ‘W’ pattern.

The simple fact is all stocks correct. And often enough, even in healthy market environments, technical leadership can fall victim to this type of bump in the road.

About Workhorse.....

Workhorse Group Inc designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States.

It operates through two divisions, Automotive and Aviation. The company also develops cloud-based and real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency.

Workhorse stock has been trading for the past decade or so. But it did not get much attention until this year. Consider that WKHS stock has soared from $1.32 to a high of $30.99.

Workhorse is the developer of electric vehicles for last-mile delivery. The company got its start back in 2007 and was called AMP Electric Vehicles. At first, the focus was on developing EVs for two-seat roadsters. But the company would eventually pivot to create trucks and vans for commercial purposes.

A big part of this involved a merger with Workhorse Custom Chassis, which was founded in 1998. The company was the developer of General Motors’ (NYSE:GM) chasses. As a result, the merger allowed for the new entity — Workhorse — to become a full-blown manufacturer.

USPS Rumor.....

Earlier this year there were whispers that Workhorse Group could receive a big contract from the USPS. This would be worth upwards of $6.3 billion dollars if the company actually gets the contract; but this is still up in the air. If it does it will be immediately catapulted into full-scale mass production. As of last report, there were three bidders still in the running to replace USPS 165,000 aging delivery vehicles. Based on what the analysts are saying it really could go either way for Workhorse Group.

Analysts at Roth Capital Partners see the company getting the contract but have lowered their rating on the stock all the same. In their view, the contract could be worth upwards of $8 billion or roughly 5,800X next year’s earnings. The catch is that USPS is holding off on the decision until later in the year due to its hassles with budgeting and Congress.

Lordstown Motors Corp.....

Workhorse owns a 10% equity stake in Lordstown Motors Corp., a company that wants to be the first to create an all-electric pickup truck. Lordstown Motors is going public shortly via a SPAC, or Special Purpose Acquisition Company (it is looking to merge with the DiamondPeak Holdings (NASDAQ:DPHC)), and could be a success like many other SPACs we’ve seen this year.

In other words, this could represent a valuable asset for Workhorse’s balance sheet.

Earnings.....

Workhorse is scheduled to report its next earnings results on Friday, November 13th.

Brokerages predict that Workhorse Group will report sales of $400,000.00 for the current fiscal quarter.

On average, analysts expect that Workhorse Group will report full-year sales of $16.85 million for the current fiscal year, with estimates ranging from $16.10 million to $17.60 million.

For the next financial year, analysts anticipate that the business will report sales of $139.55 million, with estimates ranging from $119.10 million to $160.00 million.

Also, equities research analysts forecast that Workhorse Group will report earnings per share (EPS) of ($0.11) for the current fiscal quarter. Workhorse Group posted earnings per share of ($0.17) during the same quarter last year, which suggests a positive year over year growth rate of 35.3%.

On average, analysts expect that Workhorse Group will report full-year earnings of ($1.57) per share for the current fiscal year. For the next financial year, analysts forecast that the company will report earnings of ($0.29) per share, with EPS estimates ranging from ($0.35) to ($0.21).

Past Earnings.....

Workhorse Group last posted its quarterly earnings data on Monday, August 10th. The company reported ($1.76) EPS for the quarter, missing the consensus estimate of ($0.12) by ($1.64). The firm had revenue of $0.09 million during the quarter, compared to analyst estimates of $0.30 million.

Workhorse’s C650 and C1000 Step Vans.....

Workhorse’s C650 and C1000 step vans have a modular battery pack system, which has 35 to 70 kilowatt hours of power and 100-mile ranges. There is also a proprietary telematics system to track and monitor the performance and optimize the routes. Workhorse estimates that its vehicles have 60% less maintenance expense versus fossil-fueled trucks. This could translate into $170,000 in savings over a 20-year period. Because of the strong return on investment, the company has taken a premium pricing model.

So far, there are over Workhorse 400 vehicles on the road. But there is likely to be significant growth in the coming years.

Moving Forward.....

One positive announcement that has emerged from the Ohio-based company is it has received the approval to hand out monetary vouchers for C-Series truck sales in the state of New York. This is welcome news for investors as in July; Workhorse also received HVIP eligibility in California, meaning two of the largest populations in America locked up for discounts on its truck sales for last-mile deliveries.

Summary.....

With the surge in the growth of e-commerce, there is a need for more cost-effective last-mile delivery vehicles. And yes, Workhorse is a pretty good option. It is also important that the company’s vehicles are not just a concept. Workhorse does have contracts — albeit relatively small — with companies like Ryder (NYSE:R).

Workhorse Group has a 12 month low of $1.32 and a 12 month high of $30.99. The stock has a market capitalization of $2.40 billion, a PE ratio of -12.33 and a beta of 2.82. The business has a 50 day simple moving average of $23.62 and a 200-day simple moving average of $12.20.”

CONTACT US AND GET A SPECIAL PRICE ON OUR MEMBERSHIPS!

So…..

Workhorse Group is a stock that delivers profits if you wait for the dips. And now, that the stock price is near $20, WKHS stock should have support.

Therefore, if you are interested in finding out the recommended trade just join the “Armchair Traders Membership.”

IF YOU ARE INTERESTED IN WEEKLY OPTIONS - CLICK HERE!

Therefore.....

Will Workhorse Group Shares Continue To Rise?

Where Will Workhorse Group Shares Br In Six Months?

What Other Trades Are We Anticipating?

Do You Wish To Be Part Of This Action?

Join us here at Stock Options Made Easy, and find out our trades moving forward.


AS ALWAYS THE DECISION IS YOURS!


An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


Share



”Success is simple. Do what's right, the right way, at the right time.”


Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



Back to Stock Options Made Easy Home Page from Workhorse Group Making A Splash!