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Hyrecar Gained 228% Over the Year. Is it a Strong Buy?

 Stocks fluctuated over the last weeks due to investors’ uncertainty about global economic recovery and the Covid-19 vaccinations. Even though the authorities began rolling out the vaccines, there are some problems on that front, concerning the fast delivery. Meanwhile, the infection cases continue to surge, and governments are forced to issue new restrictions. The global crisis seems more difficult to overcome, then investors hoped.                                               

 

However, that doesn’t mean that you should postpone investing for the future. If you choose wisely, you should find perfect opportunities out there. Wall Street analysts recommend some stocks, which are a steal right now. Hyrecar is one of them. 

 

The gig economy has boomed in recent years. It connects people with skills to people with needs, and Hyrecar is a good example of how such a business can be successful. The company fills a gap for car-less drivers. It connects car owners with idle vehicles to gig drivers who need a vehicle.

 

The Hyrecar service offers drivers to rent time in these vehicles, thus earning money from their transport or delivery routes. At the same time, the car’s owner earns a passive income from the rental fee. The company operates on the peer-to-peer model, and it is available to subscribers as a mobile app or an online platform.

 

Over the past year 12 months, Hyrecar’s shares have skyrocketed. The stock increased by 228% in that time, surging especially high after economies opened up in 2H20.

 

The company’s revenue soared to $6.8 million in 3Q20 from $3.7 million in 3Q19, showing a year-over-year gain of 83%. Like many tech-oriented startups, the stock currently runs a net loss. However, that loss has moderated over the course of 2020. EPS was negative 24 cents in 3Q19, but that had improved to negative 10 cents in 3Q20.

 

New partnerships are bringing Hyrecar more success 

 

In January 2021, Hyrecar began partnerships with Cogent Bank’s Specialty Lending Unit and AmeriDrive Holdings, an automotive fleet manager, to increase the pool of available vehicles. That caused the surge in vehicle availability, rising analysts’ confidence in Hyrecar.

 

Maxim analyst Jack Vander Aarde stated that new strategic partnerships involving the company and four key players, including Cogent Bank (private) and AmeriDrive Holdings (private), aims to more than double the vehicle supply on Hyrecar’s platform in the coming 12-18 months. The analyst views the company’s announcement as a significant win for it.

 

Vander Aarde gave a Buy rating to the stock along with an $18 price target. His target implies an 82% upside in the coming year. 

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