Is NFI Group (TSX: NFI) an EV stock to buy right now?

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 Is NFI Group (TSX: NFI) an EV stock to buy right now?
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Highlights

  • Stocks of NFI Group, a Canadian electric vehicles (EVs) manufacturer, are grabbing eyeballs on the stock markets following some recent announcements.
  • The Winnipeg, Manitoba-headquartered company is known to manufacture electric automobiles while also offering aftermarket services for transit vehicles.
  • The Canadian automobile company saw its revenue stand at US$ 492 million in Q3 FY2021, while it delivered 752 equivalent units.

Stocks of NFI Group, a Canadian electric vehicles (EVs) manufacturer, are grabbing eyeballs on the stock markets following some recent announcements.

The Winnipeg, Manitoba-headquartered company is known to manufacture electric automobiles while also offering aftermarket services for transit vehicles.

Let us discuss why NFI Group is drawing investor attention.

Why could NFI (TSX:NFI) stock be trending?

NFI said on Monday, February 14, that its subsidiary New Flyer of America Inc has received an order from the New York City Transit Authority to manufacture 60 battery-based heavy-duty transit buses. 

Last week, on February 11, the company had previously announced that New Flyer received a contract for up to 340 hybrid-electric buses from the Southeastern Pennsylvania Transportation Authority in Philadelphia.

This contract, which is said to aim at promoting sustainable public transportation, has been backed by the Federal Transit Administration (FTA).

Also read: Why is Avis Budget (CAR) stock trending? 

NFI Group Q3 FY2021 results

The Canadian automobile company saw its revenue stand at US$ 492 million in Q3 FY2021, while it delivered 752 equivalent units.

The COVID disruptions, including supply chain worries and costs, is said to have continued to impact its manufacturing and aftermarket businesses in the third quarter of 2021.

NFI recorded a net loss of US$ 15 million in the latest quarter, down by US$ 10 million year-over-year (YoY).

NFI Group (TSX: NFI): Q3 FY2021 results

 Image source: © 2022 Kalkine Media®  

NFI Group stock performance

The C$ 1-billion market cap company saw its stock close at US$ 19.68 apiece on Monday, up by almost two per cent.

The EV stock swelled by about three per cent month-to-date (MTD).

Bottomline

Some market researchers believe that the increasing demand for energy-efficient vehicles is likely to grow further in the future, which can bolster the EV market. Hence, NFI stock could be one to watch.

Also read: Why is Sea Limited (SE) stock crashing?

Please note, the above content constitutes a very preliminary observation or view based on 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.

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