2 EV Stocks You Might Want to Avoid Right Now

: GOEV | Canoo Inc. News, Ratings, and Charts

GOEV – Although the electric vehicle (EV) market is expanding, it is still being held back by supply chain snags and the absence of EV charging stations. In addition, growing economic worries have dampened consumer confidence, slowing overall demand. Therefore, avoiding fundamentally-weak EV stocks Canoo (GOEV) and Gogoro (GGR) may be prudent. To learn more, read on…

Despite macroeconomic challenges, demand for electric cars (EVs) remains high. According to reports, the U.S. EV industry will expand at a 25.4% CAGR from 2021 to 2028. However, supply chain concerns and insufficient charging infrastructure impeded the industry’s growth.

On the other hand, rising economic worries are impacting consumer confidence. The Conference Board Consumer Confidence Index fell to 95.7 points in July from 98.4 in June, its lowest level since February 2021. This might eventually result in a decrease in aggregate demand.

Furthermore, given the current economic environment, investors are seeking fundamentally sound, low-risk equities that can help them weather an economic downturn. Therefore, we think it could be wise to avoid fundamentally-weak EV stocks Canoo Inc. (GOEV) and Gogoro Inc. (GGR).

Canoo Inc. (GOEV)

GOEV, a mobility technology firm, designs, engineers, develops and manufactures electric cars in the United States for commercial and consumer markets. The company provides lifestyle delivery cars, multi-purpose delivery vehicles, and pickups. 

It also offers a multi-purpose platform architecture, a self-contained, fully functional rolling chassis design that can accommodate a wide range of vehicle weights and ride characteristics.

GOEV’s total costs and operating expenses increased 45% year-over-year to $140.79 million in the first quarter ended March 31, 2022. Its loss from operations grew 45% from the prior-year quarter to $140.79 million. The company’s net loss increased 723.3% from the year-ago value to $125.37 million. Its loss per share amounted to $0.54 over this period.

The company’s EPS is expected to decline by 6% and 57.1% in the current and next quarters, respectively. The stock has declined 57.3% over the past year and 28.7% over the past three months.

GOEV’s POWR Ratings are consistent with this bleak outlook. The stock’s overall F rating translates to a Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

GOEV has been graded an F for Quality and a D for Stability and Value. Within the D-rated Auto & Vehicle Manufacturers industry, it is ranked #52 of 65 stocks. Click here to see additional POWR Ratings for Growth, Sentiment, and Momentum for GOEV.

Gogoro Inc. (GGR)

GGR manufactures two-wheeled electric vehicles. The firm delivers a two-wheeled electric scooter with cloud connectivity and an electric motor with swappable battery infrastructure for capturing, evaluating, and sharing riding data via a mobile application on the rider’s smartphone.

For the first quarter ended March 31, 2022, GGR’s revenue increased 60.9% year-over-year to $94.45 million. However, the company’s operating loss grew 9.2% year-over-year to $19.84 million. Its net loss surged 12.8% from the prior-year quarter to $21.71 million, while its loss per share came in at $0.11.

The stock has declined 39.5% over the past year and 22.1% over the past month.

GGR’s weak fundamentals are reflected in its POWR Ratings. The stock has an overall D rating, equating to a Sell in our proprietary rating system. The stock has a D grade for Growth and Value. In the B-rated Auto Parts industry, it is ranked #57 of 68 stocks.

In addition to the POWR Ratings grades I have just highlighted, you can see the GGR rating for Momentum, Stability, and Sentiment here.


GOEV shares were unchanged in premarket trading Friday. Year-to-date, GOEV has declined -53.11%, versus a -13.59% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
GOEVGet RatingGet RatingGet Rating
GGRGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession or Not Recession…That Is the Question

Every investor appreciates that recessions and bear markets go hand in hand. But the definition of a recession often seems more difficult to pin down. So are we in a recession? And if not, then does that mean that disaster has been averted or that the pain train is still rolling towards investors? This is an important debate because it helps us appreciate what lies ahead for the stock market (SPY). We will tackle this vital topic in this week's commentary. Read on below...

:  |  News, Ratings, and Charts

3 Active Stocks on Wall Street to Buy Right Now

Even though the U.S. stocks ended July with decent gains, growing recession fears could keep the stock market under pressure in the near term. However, despite the current market headwinds, it could be wise to invest in fundamentally sound stocks, Microsoft (MSFT), SIGA Technologies (SIGA), and Fortinet (FTNT), which have been active on Wall Street lately. Read on to learn more…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

:  |  News, Ratings, and Charts

2 Winning Stocks to Pay Attention to This Week

Concerns over soaring inflation, the Fed’s aggressive interest rate hikes, the decline in GDP for two consecutive quarters, and a potential recession are expected to keep the stock market under pressure in the near term. Fundamentally sound and winning stocks Murphy USA (MUSA) and JAKKS Pacific (JAKK) could be good additions to your watchlist as investors prepare for a busy week of inflation data. Let’s discuss…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

Read More Stories

More Canoo Inc. (GOEV) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All GOEV News