WKHS Stock Price: Workhorse Group Inc set for third day of falls, CFO says valuation is comparably cheap

NASDAQ: WKHS is set to extend its retreat from the highs for the third consecutive day.
Steve Schrader, the company's CFO, said the company's valuation looks cheap.
Workhorse Group Inc. continues to benefit from being at the right place at the right time.

Yohay Elam FXStreet

NASDAQ: WKHS is set to kick off trading with another drop, getting closer to $16 – and completing around 25% from the peak close of $20.91 on July 2. Moreover, it would be an even more significant stumble for those who bought Workhorse Group Inc stocks at their $22.90 peak.

Profit-taking makes sense after the meteoric rise from the $3 handle seen as late as mid-June. The electric carmaker from Loveland, Ohio, still has several advantages that may lead to a renewed rally.

Workhorse Group news

Workhorse's CFO Steve Schrader spoke to Benzinga and said that the firm's all-electric van and drone offerings make it a unique company – benefitting from demand from commercial and also government firms. Workhorse's delivery vehicles make it attractive for online retailers aspiring to become greener.

Moreover, Schrader compared NASDAQ: WKHS's valuation to that of competitor Nikola, and said his firm's valuation looks "very cheap" in comparison. Looking at Elon Musk's Tesla – the leading EV firm, his words make even more sense.

Investors do not need to adhere to the CFO's advice to find advantages. Apart from operating in a growing market – demand for deliveries is on the rise amid the coronavirus Criss – Workhorse also enjoys a strong financial war chest. It has recently secured $70 million in investment, aimed to ramp up its manufacturing.

See WKHS Stock Price: Workhorse Group Inc has five reasons to extend its bullish surge

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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