Slowly Accumulate Workhorse Stock on the Rebound

Read The Full Article On: Investorplace

Don’t get too excited now, but the bulls are regaining control of WKHS stock

There’s been a flurry of activity in the electric vehicle space this year. Last-mile delivery specialist Workhorse (NASDAQ:WKHS) is just one of many purveyors of new-generation vehicles. So, why should anyone choose WKHS stock over other investments?

That’s a valid question, and we have to scratch beneath the surface to see what’s special about WHKS stock. After all, electric vehicle stocks are risky and this particular stock has been known to make some wild price moves in both directions.

Just for that reason alone, it’s not a great idea to pour your entire net worth into WHKS stock. However, this doesn’t mean that you can’t gradually accumulate shares and build a moderate position.

No one can guarantee profits, but we can at least investigate this fascinating company and its potential for strong returns in 2021. Don’t expect perfection, but perhaps we’ll at least find that Workhorse is carving out its own niche in delivery truck electrification.

A Closer Look at WKHS Stock

Midday on Nov. 20, the bulls are delighted as WKHS is posting a nice 10% gain. This is not unusual, but neither are deep red days in which WKHS might shed 10% or more.

Clearly, this is not your father’s or your grandfather’s automotive stock. Volatility is the norm with WKHS stock, so you’ll need to brace yourself for a possibly bumpy ride if you choose to invest in this.

Also, don’t expect to be impressed with WKHS stock if you’re using old-school valuation metrics. For example, the stock has trailing 12-month earnings per share -$2.65. That’s not encouraging for value-minded investors, but electric vehicle stock traders might need to learn to accept negative earnings as typical.

The good news is that WKHS stock holders are enjoying a swift recovery in the share price. The stock was practically cut in half from mid-September to the end of October. But then, WKHS surged from $15 and change to $25. This should give the bulls renewed hope for a full recovery to the 52-week high of $30.99.

Leave a Reply

Your email address will not be published. Required fields are marked *