The popular electric delivery truck maker has skyrocketed an astounding 100% within 1 week. Here’s why Workhorse Group (WKHS) stock skyrocketed.
Workhorse Group (WKHS) joins Russell 3000 Index
Our inclusion into the Russell 3000 Index represents another milestone for Workhorse as a public company in a year where we expect to make additional landmark achievements in the electric vehicle industry, the Russell Indexes are a widely known and well-respected benchmarking standard. We appreciate being a part of this select group and will look to leverage this platform to generate further interest and awareness in our business within the investment community and beyond.
Duane Hughes, CEO at Workhorse Group
As stated above from a press release the company has joined the Russell 3000 Index, this index is widely used by investment firms including hedge funds and institutional investors. The Russell 3000 Index is led by one of the biggest global market indexes in the world.
Workhorse Group (WKHS) Analysis
- Offering cost-effective solutions to the commercial transportation sector, Workhorse Group serves a market of close to $18.0 billion.
- If the drone industry develops its applications, Workhorse Group will be very well prepared to offer its technology.
- Shareholder Marathon is one of the money managers selected for managing the Legacy Securities Public Private Investment Program Fund.
- If Marathon offers its own money to Workhorse, I would expect it to use the government’s money to finance Workhorse.
- If sufficient money managers, including the PPIP money managers, believe that the technology is valuable, Workhorse’s share price will spike up.
With many clients operating from home, most traders predict a huge growth rate for the e-commerce market. The US e-commerce industry had been growing rapidly before COVID-19. More likely, the new situation will make the industry grow even faster.
The growing e-commerce sector acts as a driver for the growth of the logistics market. The US e-commerce industry was valued at USD 400 billion in 2017 and is expected to register an exponential growth rate. By 2023, the industry is expected to account for 7% of all US retail sales.
Mordor Intelligence
If the U.S. e-commerce industry sees its activity spike, there is another sector that will most likely benefit; the freight and logistics market. The North American freight and logistics industry would most likely profit from the COVID-19 scenario, anticipating a business gap of $912 billion by 2023. We may need to work from home, but someone will need to bring us food, gifts, electronic devices or chocolate. I don’t think the transportation is going to change a lot.
There is Workhorse Group amongst the companies that will benefit from the necessary increase in transportation. Workhorse Group serves a market of close to $18.0 billion, offering cost-effective solutions for the commercial transportation sector.
Conclusion: is Workhorse Group (WKHS) a reliable investment?
Shares of Workhorse Group (WKHS) appear to be a very good investment option, with Wall Street analysts expecting its price to rise considerably in the next several months. The majority of the metrics point to this investment being highly attractive.
