- 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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD stays below 1.2650 as BoE Governor Bailey testifies
GBP/USD trades in the red below 1.2650 on Tuesday. Although BoE Governor Bailey said a gradual approach to removing policy restraint will help them observe risks to the inflation outlook, the sour mood doesn't allow the pair to gain traction.
EUR/USD remains heavy near 1.0550 amid escalating Russia-Ukraine conflict
EUR/USD stays under heavy selling pressure near 1.0550 in Tuesday's European trading. The US Dollar finds fresh haven demand on escalating goeopolitical tensions amid reports that Kremlin is threatening a nuclear response amid Ukraine's use of Western missiles against Russia.
Gold extends recovery toward $2,640 as geopolitical risks intensify
Gold price builds on Monday's gains and rises toward $2,640 as risk-aversion grips markets amid intensifying geopolitical tensions between Russia and Ukraine. Meanwhile, the 10-year US Treasury bond yield is down more than 1% on the day, further supporting XAU/USD.
Canada CPI expected to rise 1.9% in October, bolstering BoC to further ease policy
The Canadian Consumer Price Index is seen ticking higher by 1.9% YoY in October. The Bank of Canada has reduced its policy rate by 125 basis points so far this year. The Canadian Dollar navigates multi-year lows against its American counterpart.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.