The Tech sector is one of the strongest on the market. It also offers various opportunities, as the companies within it differ with their niches. There are medical stocks, internet stocks, and many others. Alongside the tech giants stand little-cap companies. And some of them promise hefty gains. As their shares are very cheap, they are easily affordable and make great investments. Furthermore, small-cap companies are less affected by market volatility than big stocks.
Experts recommend several stocks, which are an excellent choice right now. Arcimoto is one of them. This green manufacturer has developed an electric car, dubbing it as FUV – Fun Electric Vehicle. It’s already quite popular, as the company has received pre-orders for 4,128 vehicles despite the coronavirus crisis.
The customers usually prefer their cars large, but the company chose to market the tiny FUV as a leisure product. Arcimoto is producing FUVs at a rate of one per day in its Oregon factory currently. It has already delivered eight cars in Florida, where Arcimoto has a rental franchise. The rental franchise will target tourist rentals on the island.
Furthermore, the company plans to upsize its vehicle line. It is currently developing prototypes to test out FUVs as emergency or delivery vehicles.
Wall Street analysts think that Arcimoto has good potential. Presently, the stock’s average price target is $4.50, which indicates an upside of 105%. Amit Dayal, H.C. Wainwright analyst, set his price target at $7 for this stock, suggesting an upside potential of 220%.
How does the company fare during the pandemic?
Arcimoto planned to deliver 729 vehicles during 2020, which the experts have revised down to 235 for now. Dayal believes that the current economic slowdown will be a net positive for the company. Arcimoto is using the opportunity to streamline operations and increase efficiency.
The company has also expanded its Deliverator pilot program, including a major national grocer. Analysts expect their production will bounce back to nearly 2,000 units in 2021. Arcimoto’s operating costs will probably be lower as well because of the lockdowns.
