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Workhorse Group (WKHS) Gains But Lags Market: What You Should Know

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Workhorse Group (WKHS - Free Report) closed the most recent trading day at $16.15, moving +0.31% from the previous trading session. This change lagged the S&P 500's 1.24% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.35%.

Heading into today, shares of the truck and drone manufacturer had lost 7.42% over the past month, lagging the Auto-Tires-Trucks sector's gain of 18.47% and the S&P 500's gain of 7.09% in that time.

Investors will be hoping for strength from WKHS as it approaches its next earnings release. The company is expected to report EPS of -$0.12, down 20% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $0.30 million, up 2900% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.35 per share and revenue of $16 million, which would represent changes of -400% and +4144.03%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for WKHS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 2.99% lower. WKHS is currently a Zacks Rank #3 (Hold).

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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