Workhorse Group (WKHS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Workhorse Group (WKHS) closed at $20.34, marking a +0.87% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.35%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq added 0.37%.
Coming into today, shares of the truck and drone manufacturer had lost 8.88% in the past month. In that same time, the Auto-Tires-Trucks sector gained 2.26%, while the S&P 500 gained 4.32%.
WKHS will be looking to display strength as it nears its next earnings release. On that day, WKHS is projected to report earnings of -$0.11 per share, which would represent year-over-year growth of 35.29%.
WKHS's full-year Zacks Consensus Estimates are calling for earnings of -$1.57 per share and revenue of $16.85 million. These results would represent year-over-year changes of -2142.86% and +4369.5%, respectively.
Any recent changes to analyst estimates for WKHS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. WKHS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, WKHS currently has a Forward P/E ratio of 288.07. This valuation marks a premium compared to its industry's average Forward P/E of 24.59.
Also, we should mention that WKHS has a PEG ratio of 8.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Original Equipment was holding an average PEG ratio of 2.25 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Workhorse Group, Inc. (WKHS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.