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

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In the latest trading session, Workhorse Group (WKHS - Free Report) closed at $24.20, marking a +1.13% move from the previous day. This move lagged the S&P 500's daily gain of 1.74%. Elsewhere, the Dow gained 1.91%, while the tech-heavy Nasdaq added 1.88%.

Coming into today, shares of the truck and drone manufacturer had gained 11.93% in the past month. In that same time, the Auto-Tires-Trucks sector lost 3.31%, while the S&P 500 lost 1.86%.

Investors will be hoping for strength from WKHS as it approaches its next earnings release. In that report, analysts expect WKHS to post earnings of -$0.11 per share. This would mark year-over-year growth of 35.29%.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.57 per share and revenue of $16.85 million, which would represent changes of -2142.86% and +4369.5%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for WKHS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. WKHS is currently a Zacks Rank #3 (Hold).

Digging into valuation, WKHS currently has a Forward P/E ratio of 341.86. For comparison, its industry has an average Forward P/E of 25.16, which means WKHS is trading at a premium to the group.

It is also worth noting that WKHS currently has a PEG ratio of 9.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 2.54 based on yesterday's closing prices.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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