- NASDAQ: WKHS is trading below $15, extending losses to the fifth consecutive day.
- Profit-taking and the broad drops in tech stocks are weighing on Workhorse Group Inc.
- The firm's five reasons to rise remain intact and may attract bargain-seekers.
Even the best working horse needs to rest at the barn from time to time – and that is happening to NASDAQ: WKHS for the fifth consecutive day. After hitting a peak close price of $20.91 on July 2 – just before the Independence Day holiday – Workhorse Group Inc. is suffering a long hangover.
Traders who rode the stock since its June lows at the $3 mark – or galloped from the 52-week low of $1.32 – may have been taking profits. That has come despite the words of Workhorse's CFO Steve Schrader, who compared his firm to rival Nikola, saying Workhorse's valuation is "very cheap."
Friday's falls are partially related to the drop in the broader tech sector. NASDAQ is edging lower after reaching a 20% year-to-date gain.
Will bargain-seekers buy the dip?
Workhorse Group news
Apart from the CFO's statement, the five bullish reasons favoring the stock. These include $70 billion in the financing, its inclusion in the Russell 3000 index, a bullish buy recommendation with a target price of $26, Tesla's becoming the world's most valued carmaker, lifting all the sector – Robinhood accounts owning the stock surged by 436% in June to 116,000.
The funds from both investors and traders, alongside the growing market – electric delivery vans that are benefiting from the virus and the green trends – could keep NASDAQ: WKHS bid.
For more Workhorse Group Inc has five reasons to extend its bullish surge
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