2020 has been the year for electric vehicles (EVs). With governments across the world pledging to combat climate change by ultimately banning fossil-fuel cars, and with EVs demonstrating enhanced efficiency, the industry continues to flourish. As the industry is expected to grow at a CAGR of 21.1% over the next 6 years, Workhorse Group, Inc. (WKHS) and Blink Charging Co. (BLNK) hold immense growth potential.
Workhorse Group Inc. engages in the design, development, manufacture, and sale of electric medium duty trucks and unmanned aerial delivery systems that are integrated with electric vehicles. The company was founded in 2007 and is based in Loveland, Ohio. It stands to benefit from the commercial use of EVs.
Blink Charging Co. is also well-positioned to be indirectly benefited from the world rapidly shifting to EVs. The company engages in the operation and provision of electric vehicle, charging equipment, and networked EV charging services. Its product line and services include Blink EV charging network, charging equipment, also known as electric vehicle supply equipment, and EV charging services. The company was founded by Michael D. Farkas on October 3, 2006 and is headquartered in Hollywood, FL.
Workhorse Group, Inc. (WKHS)
WKHS produces high performance electric vehicles for commercial and utility transportation across the United States. It also designs unmanned aerial vehicles purpose built for interstate package delivery. The company is an original equipment manufacturer of commercial medium duty truck series.
WKHS has made substantial progress in developing its Horsefly Unmanned Aerial System, for which it has filed a type certification application with the Federal Aviation Administration (FAA). If sanctioned, WKHS’ Horsefly commercial drone will be able to deliver parcels, carry sensors and cameras.
Earlier this year, WKHS’ C-series trucks received executive order from the California Air Resources board, designating it as a zero-emission vehicle. This bodes well for the company, as it requires each of its vehicles to be tested as per norms set by the Environmental Protection Agency (EPA) as a part of its executive approval process. WKHS partnered with Hitachi America in August to streamline its production and delivery process by leveraging Hitachi’s industry knowledge in this field.
WKHS’s electric truck division is currently in the process of signing a contract with United States Postal Service (USPS) to become a prime supplier of electric trucks for delivering mail across the country. The company recently received orders for 500 electric trucks from Pritchard Auto Company.
WKHS entered into an agreement to sell 950 electric delivery trucks to United parcel Service in July, forming one of the largest EV orders of this base in the United States. The company also received a delivery order of 20 electric trucks from eTrucks company.
WKHS has raised approximately $540 million over the past couple of months from institutional investors, supplying the company with sufficient capital to finance its electric truck production and ensure timely delivery of the existing orders.
WKHS’ long-time strategic partner Lordstown Motors Corporation has announced a SPAC agreement with DiamondPeak Holding Corp, following which Lordstown will list publicly. Post this transaction, WKHS will retain its 10% ownership stake in the newly merged company with an estimated valuation of $1.60 billion.
WKHS’ net sales increased 131.62% year-over-year to $564,707 in the third quarter ended September 2020. It is currently in the process of manufacturing electric trucks, with a production and delivery target of 1,800 vehicles in 2021.
Analysts estimate the company’s EPS to grow 50% in the current quarter ending December 2020, and 79.9% next year. The consensus revenue estimate of $1.54 million for the ongoing quarter indicates a 76,900% improvement from the year-ago value.
WKHS has gained more than 1,820% since hitting its 52-week low of $1.32 in March. The stock hit its 52-week high of $30.99 on September 21st.
How does WKHS stack up for the POWR Ratings?
A for Trade Grade
A for Industry Rank
B for Overall POWR Rating.
It is currently ranked #20 out of 34 stocks in the Auto & Vehicle Manufacturers industry.
Blink Charging Co. (BLNK)
BLNK owns and operates electric vehicle charging equipment and network charging stations across the United States. Its primary product line includes Blink EV Charging network, EV charging equipment, and EV related services.
BLNK recently introduced innovative cable management solutions for its charging stations, allowing the company to maintain its equipment easily while ensuring the safety of users. On November 4th, BLNK acquired EV charging operator U-Go Stations, Inc., adding 44 new locations to its portfolio charging points.
Earlier in October, BLNK installed 6 level 2 IQ 200 EV charging stations in Edgewood real estate investment trust multifamily properties in Missouri.
BLNK’s revenues increased 18% year-over-year to $0.90 million in the third quarter ended September 2020. This can be attributed to 74% rise in product sales, and 87% rise in Blink owned chargers deployed across the country.
Analysts expect BLNK’s EPS to rise 9.1% in the current quarter ending December 2020, and 28.6% next year. the consensus revenue estimate of $2.56 million for the fourth quarter indicates a 264.7% improvement year-over-year.
BLNK gained 2,673.6% to hit its 52-week high of $34.67 in November, since hitting its 52-week low of $1.25 in March.
BLNK is rated “Buy” in our POWR Ratings system, with an “A” for Trade Grade and a “B” for Peer Grade. It is currently ranked #16 out of 36 stocks in the Specialty Retailers industry.
WKHS shares fell $2.58 (-10.23%) in after-hours trading Tuesday. Year-to-date, WKHS has gained 729.93%, versus a 15.35% rise in the benchmark S&P 500 index during the same period.
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About the Author: Aditi Ganguly
Aditi is an experienced content developer and financial writer who is passionate about helping investors understand the do’s and don'ts of investing. She has a keen interest in the stock market and has a fundamental approach when analyzing equities. More...
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