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Why Workhorse Stock Is Flying Today

By Rich Smith – Oct 9, 2020 at 5:23PM

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Roth Capital sees a potential big win coming on Oct. 13.

What happened

Shares of Workhorse Group (WKHS 2.20%), which is developing electric delivery trucks and bidding on a big $6 billion contract to upgrade the U.S. Postal Service (USPS) delivery fleet, were galloping ahead 9.5% as of 1:35 p.m. EDT on Friday.

White pegasus runs alongside three brown horses.

Image source: Getty Images.

So what

Workhorse is the "best fit" to win the USPS contract, Roth Capital Partners says in a note covered on today. And indeed, because Workhorse is the only company in the three teams of bidders offering a fully electric delivery truck, it would appear to be the best aligned to reduce future maintenance costs for the Postal Service, and make future fuel costs more predictable as well.

What's more, the contract in question -- long believed to be worth in the neighborhood of $6 billion -- could actually end up paying $8.1 billion in taxpayer money to the winner(s), TheFly says.

Now what

Whether Roth is right or wrong in its prediction that Workhorse will win the contract remains to be seen, but investors won't have to wait long for the answer. The USPS is expected to announce its winner, or winners, on Oct. 13.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Workhorse Group Stock Quote
Workhorse Group
$1.93 (2.20%) $0.04

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