Workhorse (WKHS, $23.02) shares downgraded by Roth Capital analyst

Roth Capital analyst Craig Irwin downgraded shares of electric truck maker Workhorse Group  to neutral from buy.

A a U.S. Postal Service spokesperson told Roth the USPS won’t decide who wins the competition for its next generation of delivery trucks until year-end.

Irwin also slashed his share-price target on the shares to $27 from $33. Analysts’ average price target is $23, according to Bloomberg.

Last week Irwin expected the USPS would make its selection for the $8 billion contract Tuesday.  But now that USPS is seemingly “punting” on the contract, that substantially increases uncertainty for Workhorse, according to Irwin.

Tickeron's AI-powered scorecard asseses WKHS a " SELL".

WKHS's RSI Indicator peaks and leaves overbought zone

The 10-day RSI Indicator for WKHS moved out of overbought territory on September 22, 2020. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 instances where the indicator moved out of the overbought zone. In 38 of the 42 cases the stock moved lower in the days that followed. This puts the odds of a move down at 90%.

Current price $23.11 is above $18.20 the highest resistance line found by A.I. Throughout the month of 09/10/20 - 10/12/20, the price experienced a +19% Uptrend. During the week of 10/05/20 - 10/12/20, the stock enjoyed a +9% Uptrend growth.

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on October 12, 2020. You may want to consider selling the stock, shorting the stock, or exploring put options on WKHS as a result. In 76 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 90%.

The Moving Average Convergence Divergence Histogram (MACD) for WKHS turned negative on September 24, 2020. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In 36 of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at 86%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 82%.

WKHS broke above its upper Bollinger Band on September 14, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 49 of 56 cases where WKHS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 88%.

Following a +27.11% 3-day Advance, the price is estimated to grow further. Considering data from situations where WKHS advanced for three days, in 244 of 281 cases, the price rose further within the following month. The odds of a continued upward trend are 87%.

The Aroon Indicator entered an Uptrend today. In 179 of 209 cases where WKHS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 86%.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 53%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.36.

The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of 73 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: WKHS's P/B Ratio (-33.69) is very low in comparison to the industry average of (1.11). P/E Ratio (0.00) is within average values for comparable stocks, (52.04). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (1.44). Dividend Yield (0.00) settles around the average of (0.85) among similar stocks. WKHS's P/S Ratio (7094.25) is very high in comparison to the industry average of (254.10).

The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. WKHS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 1 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.