Electronic vehicle (EV) stocks have had a dismal start to 2021. The industry as a whole has slid since the new year rolled around. This past May was particularly brutal for EV stocks.
Take a close look at the top EV automakers’ performance in the prior month, and you will find the majority were down. In fact, some of these stocks were down more than double digits in the month. Canoo (GOEV) was down 13% in May. GreenPower Motor Company (GP) was down 13%. Ayro (AYRO) was down nearly 14% in the prior 30 days, and Workhorse (WKHS) was down more than 25%.
Below, I provide a look at each of these beaten-down EV stocks to see if any of them are worthy of a position in your portfolio.
WKHS makes small trucks used for the “last mile” of deliveries. WKHS lost out on the coveted United States Postal Service (USPS) contract. As a result, WKHS has struggled recently. WKHS has a fairly high beta of 2.64, meaning it will fluctuate when the market undulates.
WKHS has an overall grade of F, which translates into a Strong Sell rating in our POWR Ratings system. The stock has grades of F in the Value, Quality, Sentiment, and Stability components of the POWR Ratings. Click here to find out how WKHS grades out in the remainder of the POWR components, such as Momentum and Growth.
Of the 57 stocks in the Auto & vehicle Manufacturers industry, WKHS is ranked second last. You can find top stocks in this industry by clicking here. WKHS is favored by analysts, though. The stock’s average target price of $13.42 indicates a potential 61% upside. Of the eight analysts who have issued WKHS recommendations, one rates it a Strong Buy, three rate it a Buy, and four consider it a Hold.
ARYO designs and makes electric vehicles used by consumers, businesses, and governments. Previously known as DropCar, AYRO has a high beta of 3.98. In other words, AYRO is volatile.
AYRO is a POWR Ratings disappointment with an overall grade of F which is a Strong Sell rating. The company has a grade of F in the Quality and Stability components and a grade of D in the Value and Growth components. If you would like to find out how AYRO fares in the Momentum and Sentiment components, you can find out by clicking here.
Of the 57 stocks in the Auto & Vehicle Manufacturers industry, AYRO is ranked 51st. The single analyst who covers AYRO rates it as a Buy with a price target of $5.13, indicating a potential upside of 192%.
GreenPower Motor Company (GP)
The world will need electric buses, cargo vans, and shuttles as we transition away from gas-powered vehicles to those reliant upon rechargeable batteries. GP has a high forward P/E ratio of 73.20, which indicates the stock is overvalued at this point.
GP is a POWR Ratings dud with an overall grade of F, translating into a Strong Sell rating. GP has grades of F in the Quality, Value, and Stability components of the POWR Ratings. You can find out how GP fares in the rest of the components such as Sentiment, Momentum, and Growth by clicking here. Of the 57 publicly traded companies in the Auto & Vehicle Manufacturers industry, GP is ranked 52nd.
Analysts believe the stock will move higher, setting an average target price of $39.80. If GP hits this level, it will have popped by more than 134%. A total of five analysts have issued recommendations on the stock, with four recommending it as a Buy and one recommending it as a Strong Buy.
GOEV develops some of the auto industry’s best electric vehicles. GOEV’s vehicles are used for business and personal purposes. GOEV is ranked 50th of 57 stocks in the Auto & Vehicle Manufacturers industry. GOEV has an overall grade of F, which is a Strong Sell rating. The company has a grade of F for the Growth component and a grade of D in the Quality, Sentiment, and Stability components. Click here to find out how GOEV fares in the Momentum and Value components of the POWR Ratings.
Analysts believed GOEV has considerable upside, setting an average target price of $10.33 for the stock. If GOEV hits this level, it will have popped by more than 30%. Of the two analysts who have issued GOEV recommendations, one rates it a Buy, and the other rates it as a Hold.
Bank of America currently has GOEV rated as an underperform, meaning there are doubts about whether the business can execute in a timely manner considering its significant strategic alterations in recent quarters. The bottom line is GOEV faces fierce competition. It is also somewhat concerning that GOEV has trailing sales of less than $3 million per year.
While analysts generally rate these stocks high, they score very low in our POWR Ratings system. This means that while these companies may have long-term potential, investors should stay clear in the meantime as stocks could see further losses in the near and intermediate-term.
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WKHS shares were trading at $17.05 per share on Thursday morning, up $5.53 (+48.00%). Year-to-date, WKHS has declined -13.80%, versus a 12.10% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...
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