|Bid||14.30 x 800|
|Ask||14.32 x 800|
|Day's Range||13.81 - 14.74|
|52 Week Range||9.50 - 35.00|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
XL Fleet Corp. (NASDAQ:XL) is yet another company that has come to market as a result of the SPAC boom last year. The company began being publicly traded on Dec. 22, and XL stock has been on a volatile ride since its inception. The company’s share price spiked to as high as $35 immediately following the SPAC transaction, and have since settled down closer to where shares opened on Dec. 22 around $15. XL specializes in providing an “electrification as a service” business model. The company currently has over 200 customers, with more than 3,000 of its systems deployed. This brings me to the first key reason I like this early-stage EV company. This Isn’t an Early-Stage EV Company XL is unlike many of its competitors which are simply business model ideas that have gone public via a SPAC to raise funds. This company has proven its business model works, and has large cap blue chip customers as clients. The likes of Coca-Cola (NYSE:KO), PepsiCo (NASDAQ:PEP), and Federal Express (NYSE:FDX) happen to be large customers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 8 Cheap Stocks Under $20 That Could Double XL has actually been in operations for around 10 years. This company has built a solid clientele, with meaningful revenues. The company’s business consists of providing hybrid/plug-in electrification drive systems for class 2-6 vehicles. The installation of these drive systems can take place on any standard OEM platform and don’t impact the warranty of the underlying vehicles. These drive systems provide fuel efficiency savings of up to 50% for these heavy duty vehicles. Additionally, greenhouse emissions are reduced by up to one-third. With so many blue chip players looking to meet greenhouse emission reduction targets, this is certainly going to be a booming business for a while. Thus, XL primarily provides a transitory technology taking ICE vehicles toward full electrification. That said, this is a company that has taken the execution risk component out of the equation. I like the medium-term value this stock provides right now at these levels. What Happens When Fleets Switch Over to Fully Electric Options? Significant risks with this business model do exist for long-term investors. Currently, the company’s core business focuses on turning ICE vehicles into hybrids to allow for short-term greenhouse emissions reductions. Longer-term, the company’s clientele will most likely invest in new fleets of purely EV options for its delivery services. These risks have been reflected in the company’s relatively small order backlog of around $12 million, and its lack of consistent and large repeat orders as in the past. However, expectations are that it will take decades for a majority of the cars on the road to be fully electric. The runway for XL is sufficiently long to make a long-term argument for owning this stock. This goes double if one believes XL can maintain its market position in this competitive market. (Yes, there are a number of competitors in this space). Additionally, XL appears to have a plan in place for the longer-term full electrification of fleets. XL has said it plans on introducing its own fully electric system by 2022. Such a move could be a game-changer, as investors are looking to buy what’s going to be hot 10 years from now, not necessarily what’s going to get us through the next ten years. Targets Extremely Aggressive for XL Stock The reality is investors in XL stock need to take a major leap of faith with this company, in some respects. The projections of a revenue increase from $21 million in 2020 to $647 million by 2023 is aggressive. Forget aggressive. This is an insanely high bar to pole-vault over. Yes, I think the secular trends in the electrification space are incredibly powerful. However, I do think a high degree of speculation is required to own a stock that is attempting to increase revenues more than 30-fold over a three year period. Thus, I would recommend investors bullish on this company stay patient. Personally, I’d like to see a few quarters of outperformance first before jumping on this bandwagon. That said, this SPAC-produced company is one with real, concrete potential right now. For those with a very long-term growth portfolio and a few shekels put aside, this could be an interesting small position to add. Disclosure: On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next Potential Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. #1 Play to Profit from Biden's Presidency The post In the Vast World of SPACs, XL Stock Could Be a Real Winner appeared first on InvestorPlace.
XL Fleet (NYSE:XL) is one of the companies that went public via a special purpose acquisition company (SPAC) in 2020. XL stock is trading on the New York Stock Exchange. After climbing to more than $32 per share in December 2020, the stock has been steadily declining. Source: Pasuwan/ShutterStock.com That’s not unusual for newly public companies. And trading at around $18 per share as of this writing, investors seem to be following the advice of CNBC’s Jim Cramer. The host of the network’s Mad Money suggested the stock may have been a steal at $15 but cautioned them not to chase it above $20. But I’m getting ahead of myself. If you’re like me, you may be late to the party on XL Fleet. The company competes in the electric vehicle sector. XL Fleet manufactures hybrid and plug-in powertrains that can transition traditional gas-powered vehicles into hybrids.InvestorPlace - Stock Market News, Stock Advice & Trading Tips XL Fleet has other competitors in this arena, notably Hyliion (NYSE:HYLN). When I wrote about Hyliion in January I said that the story was just getting interesting. In the case of XL Fleet, the company’s products are already being used in select Ford (NYSE:F), General Motors (NYSE:GM) and Isuzu (OTCMKTS:ISUZY) fleet trucks. 7 Great Sub-$20 Stocks to Buy After Inauguration Day This gives XL Fleet some interesting case studies that makes XL stock an intriguing play particularly as the environment is about to become a hot topic again. Climate for EVs Is Changing As the curtain rises on the Biden administration, climate change is making a return to the stage. In fact, probably by the time you read this the United States will have re-entered the Paris Climate Accord. But a couple of interesting things happened since the previous president took the oath of office. First, the global pandemic led to a 10% drop in greenhouse gas emissions, the largest annual drop since World War II, according to the Rhodium Group. But the group warns that this is largely a one-off based on the lockdowns. Fair enough, but consider this as well. According to the Environmental Protection Agency (EPA) carbon emissions in the U.S. steadily decreased over the past few years. In terms of raw carbon emissions reduction, the United States is outpacing every other country in the world. And even though our emissions have not fallen as much on a percentage basis, it still suggests that the United States hasn’t been ignoring the environment. I’m not trying to make a political statement about climate change. My takeaway is that our country’s transition to a carbon neutral future is happening because technology has risen to meet the challenge. The reality is that a movement away from fossil fuels is potentially big business. And that is great news for investors in XL Fleet. The Story of XL Stock Is Being Written It’s not unusual for stocks to become volatile after going public. This has been particularly true of companies that came to market via a SPAC. As such, my advice is to nibble now and look to buy more when the lock-up period ends. In the case of XL Fleet, its lock-up agreement could be as long as 12 months from the consummation of the merger (December of this year). However, the language in the company’s 8-K filed with the Securities & Exchange Commission suggests that the lock-up period could end in early summer if the XL stock price closes above $15 for 20 consecutive trading days in a 30-day trading period. The good news is that more time allows for more to be known about the company and its plans. And that’s good advice for any of these SPAC stocks. On the date of publication Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. Chris Markoch is a freelance financial copywriter who has been covering the market for seven years. He has been writing for Investor Place since 2019. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. The post XL Fleet Is Ready to Meet the New Focus on Climate Change appeared first on InvestorPlace.
XL Fleet (NYSE:XL) stock is on the rise Friday following a new rating for the stock from BTIG. Source: Alexandru Nika / Shutterstock.com BTIG analyst Gregory Lewis kicked off coverage of the stock today with a buy rating. To go along with this new rating, the analyst also includes a price target of $30 per share for XL stock. That suggests a 56.7% upside from its closing price of $19.15 per share on Thursday. So why exactly is BTIG taking such a bullish stance on XL stock? The firm believes there’s potential in the company due to its business, which is upgrading commercial vehicle fleets to make them run off of electricity, reports TheFly.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Electric vehicle (EV) stocks have been all the rage the past few months, which means XL stock increasing along with them comes without much surprise. Investors are hungry for more EV stocks to snatch up and BTIG shining a light on the company will likely attract more of them. 7 Great Sub-$20 Stocks to Buy After Inauguration Day XL Fleet is still incredibly new to public markets. The company only just completed its merger with a special purpose acquisition company (SPAC) on Dec. 22. The stock experienced a huge surge in price after this but has steadily declined since. That might make it the perfect EV stock to pick up before it potentially starts seeing major gains in the coming months. XL stock was up 4.2% as of Friday morning. On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. The post XL Fleet News: New Analyst Call Revs Up XL Stock appeared first on InvestorPlace.