Key points:
- Workhorse stock price has fallen 39% YTD. Will they rally on Q1 results?
- The company is set to release its Q1 earnings results tomorrow.
- Many expect the report to be positive, fueling a rally higher.
The Workhorse Group Inc (NASDAQ: WKHS) stock price has fallen 39% in 2022 after the rally in late February ended in early April and was followed by a significant pullback that saw the stock erode all of its earlier gains.
Also read: The Best Electric Car Stocks To Buy.
Today, we find ourselves in a unique situation as WKHS stock is trading at the support level that triggered its February rally. It is a perfect location for another rally to kick off based on technical analysis.
Therefore, the technical conditions are primed for a rally, which means that our focus can now shift to the company’s fundamentals, which tend to underpin the rallies that last for long periods and result in significant gains for investors.
Workhorse Group is set to release its calendar Q1 earnings results tomorrow before the market opens, and many hope that the firm will at least meet analysts' expectations. The company’s last quarterly report was disappointing as it failed short of analysts’ consensus estimates by a wide margin.
The tech company offers sustainable and cost-effective solutions to the transport sector. It is currently working on producing its electric vehicles known as W56 and W34 starting in the second half of 2022.
Investors expect the firm to report significant progress towards its goal of starting production activities on time. In addition, many are counting on the company’s customer-centric business approach to drive its future growth, helping it catch up with its competitors.
The company has won a contract with the US Department of Agriculture (USDA). It is currently working on securing contracts with other Federal departments and a leading retailer interested in its drone technology for monitoring, data procurement and analytics.
The USDA project is for demonstration purposes but could expand its scope in future. Workhorse has the lofty goal of making and selling at least 250 vehicles in 2022, an ambitious goal given that it is yet to start producing the said cars.
However, the firm’s prospects are pretty promising, and we will be looking forward to tomorrow’s (May 20, 2022) earnings result as an indicator of how well the firm is doing. Meanwhile, the technicals indicate that we could be in for a rally soon.
*This is not investment advice. Always do your due diligence before making investment decisions
Workhorse group stock price.
Workhorse stock has fallen 35% in 2022 and is trading near support. Could the stock rally on its Q1 results.
