Should you consider Pioneer Power Solutions (PPSI) stock?

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Should you consider Pioneer Power Solutions (PPSI) stock?

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 Should you consider Pioneer Power Solutions (PPSI) stock?
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Highlights

  • Pioneer Power Solutions, Inc. (NASDAQ: PPSI) announced receiving a US$12-million order from a large mass merchandiser.
  • Pioneer Power earned US$14.8 million in revenue in nine months ended Sept 30, 2021.
  • The Pioneer Power (PPSI) stock jumped 120.46% YTD. 

Pioneer Power Solutions, Inc. (NASDAQ: PPSI) stock rose more than 16% to around US$8 on Tuesday afternoon after announcing receiving a US$12-million order for its E-Bloc units.

The order for 62 E-Bloc units would almost double Pioneer’s sales in the T&D segment next year. It is part of a larger deal where the buyer would place more orders for its 500 stores.

Also Read: Top 3 US 5G stocks to watch in 2022

Pioneer manufactures electrical and power products. It also offers services for electric transmission and on-site power generation equipment for various industries. Its operating segments include Transmission and Distribution (T&D) Solutions and Critical Power Solutions. 

Also Read: These 5 US stocks returned between 500% and 5,000% in 2021 

Why Pioneer Power Solutions, Inc. (PPSI) stock was up today?

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Pioneer Products

Its E-Bloc units provide flexibility to combine various energy resources into a compact package for power installation. It also provides EV charging and power installation connectivity with minimum operational disturbance.

Also Read: 5 best US oil & gas stocks that returned over 100% in 2021

Financials:

For the nine months ended Sept 30, 2021, it earned revenue of US$14.8 million compared to US$14.13 million a year ago. Its net loss reduced to US$0.769 million or US$(0.09) per share diluted from US$2.24 million or US$(0.26) in the same period of 2020.

Its cash and restricted cash were US$5.15 million as of Sept 30, 2021.

The power solution company has a market capitalization of US$79 million. Its stock traded in the range of US$14.43 to US$3.09 in the last 52 weeks.

The stock closed at US$7.05 on Dec 20, 2021.  

Also Read: 2 US energy stocks with over 7% dividend yield 

Bottomline 

Shares of Pioneer Power gained 120.46% YTD. The company expects more bulk orders next year. However, investors should analyze the companies carefully before investing in stocks.

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