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Highlights
- Westport Fuels Systems (TSX:WPRT) is turning heads on the stock markets amid some favourable speculations, which are likely to have triggered some momentum for its stock price.
- Stocks of Westport Fuels galloped by over 83 per cent during the session on Tuesday, March 8, to hit a day high of C$ 3.13.
- The scrips eventually settled down at C$ 2.6 apiece, noting a rise of 52 per cent, in the face of the oil price boom.
Westport Fuels Systems (TSX:WPRT) is turning heads on the stock markets amid some favourable speculations, which are likely to have triggered some momentum for its stock price.
Stocks of Westport Fuels galloped by over 83 per cent during the session on Tuesday, March 8, to hit a day high of C$ 3.13. The scrips eventually settled down at C$ 2.6 apiece, noting a rise of 52 per cent, in the face of the oil price boom.
Let us look at why this Canadian clean fuel company is gaining traction.
Why is Westport (TSX:WPRT) stock shooting up amid the oil boom?
Last year in February, Westport stock shot up in the wake of reports that the company has cracked a deal with Amazon (NASDAQ: AMZN, AMZN: US) to supply natural gas engines.
While there has been no developments on that front, some experts believe that rising oil and gas prices could be a factor that’s stoking Westport stock prices, considering it is a manufacturer and supplier of clean fuel systems and components.
Also read: Why did Houston American (HUSA) stock skyrocket by 701% in a week?
Westport’s financial performance in Q3 FY2021
The C$ 444-million market cap company saw its third-quarter revenue climb 14 per cent year-over-year (YoY) to US$ 74.3 million in 2021. Its net loss amounted to US$ 5.8 million in the latest quarter against a profit of US$ 0.8 million in the previous-year quarter.
Westport reported an EBITDA loss of US$ 1.2 million in Q3 FY2021 compared to a gain of US$ 4.9 million a year ago.
Westport’s stock performance
After hitting a day high of C$ 3.135, Westport stock rose by about 52 per cent to close at C$ 2.60 apiece on Tuesday, with 2.3 million shares switching hands.
Bottomline
Westport does not typically belong to the energy sector. However, it provides components for the machines powered by oil and gas, including the global automotive industry. The US oil market, in addition, could see major shift due to the ban on Russian energy supplies, which could have caused a sharp increase in its stock price.
Also read: Google to buy Mandiant: 2 Canadian cybersecurity stocks to see instead
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
