Workhorse Group is a company that makes trucks and drones. They had some money problems and didn't make as much money as people thought they would. So, their stock, which is like a piece of the company that people can buy and sell, went down a lot. Now, people are wondering what will happen to the stock in the future. Read from source...
1) The title of the article is misleading, as it doesn't reflect the content of the article; 2) The writer is overly negative about Workhorse Group, and ignores several positive developments; 3) The writer seems to have a conflict of interest, as they don't disclose their ownership of competing stocks; 4) The writer unfairly compares Workhorse Group to other companies in the industry, without considering the unique challenges faced by Workhorse; 5) The writer seems to have a poor understanding of the drone and truck manufacturing industry, and its future potential.
Workhorse Group (WKHS) reported a Q2 loss of $1.40 per share, in line with the Zacks Consensus Estimate. The company missed revenue estimates, posting $0.84 million in revenues for the quarter, a significant miss from the year-ago revenues of $3.97 million. This shows a shortfall in the company's ability to meet expectations, which may weigh on its stock price. Investors should note the company's mixed trend in earnings estimate revisions and its Zacks Rank #3 (Hold) rating. WKHS shares have lost about 83.1% since the beginning of the year versus the S&P 500's gain of 17.6%. The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call. Investors should monitor the industry outlook, as Automotive - Original Equipment is currently in the bottom 30% of the 250+ Zacks industries. The top 50% of industries outperform the bottom 50% by a factor of more than 2 to 1. As a result, investors should exercise caution when considering WKHS as an investment option.