WKHS stock has been gaining momentum since the beginning of this year. Let’s take a look at the key developments.
WKHS Stock Up 55% in One Month
Workhorse Group Inc (NASDAQ:WKHS), which is involved in the manufacturing of electric delivery vehicles and trucks, has been on a highly impressive rally lately due to speculation about the signing of an important deal. Despite the fact that the company does not have many sales to speak of, the stock has performed well over the past months, and on Monday, it rose by as much as 18.6% and soared about 55% over the past month.
The reason behind the momentum with the stock is due to the announcement made by car manufacturing giant General Motors Company (NYSE:GM) that it was in discussions to sell its facility in Lordstown to Workhorse Group.
Although the deal has not yet been signed, it has created a lot of positive momentum for the company. That being said, it is also interesting to note that not too long ago Workhorse had been in danger of insolvency and the company eventually tided over the troubles through a share offering worth $25 million.
>> Huami Stock is a Small-Cap Play to Watch: What to do in the Lull?
WKHS Stock: Key Fundamentals
However, it is believed that the company could be in contention for a massive contract from the United States Postal Service, that could see the winning bidder get business worth $6.3 billion. The company would need to supply UPS with 180,000 electric-powered delivery trucks for the next seven years. Experts believe that Workhorse Group has the technology and the expertise to win and deliver on this contract. Although it is speculative, it has created a lot of momentum for the stock.
WKHS stock has been on a highly impressive run for most of 2019, and in the first half of 2019 alone, it has gained as much as 450%. However, one thing that needs to be mentioned with regards to the company is that at this point in time, it is still in the research stage. It has not recorded many sales, and the losses have been soaring.
In Q1 2019 alone, the company completed total sales of $384,000 while the losses came in at $6.3 million. However, if the company does manage to bag the UPS contract, then it could completely change the very face of the company.
What do you think of WKHS stock after the recent rally? Share your thoughts.
Featured image: DepositPhotos © pressmaster
