Penny Stocks: Horizon Global Picks Itself Up After Tough 2018

Penny stocks

Horizon Global Corporation (NYSE:HZN) has had a good start to 2019. This penny stock is up 12% and valued at $2.22 USD at the time of writing. The climb began at the start of this week, and investors have traded approximately 364,229 shares.

Penny Stocks to Watch: Horizon Global Corp

Horizon Global now has a market cap of $55.75 million. The company caters to the automotive, retail, and aftermarket sectors with its product line of towing, trailering, and cargo moving equipment. It has over ten brands under its umbrella inclusive of Draw Tite, Hayman Reese, and Bulldog.

This penny stock was worth over $8 in the middle of 2018, however, in early November, the stock tanked. This was due to the company’s quarterly earnings, released November 8th. Reporting earnings per share of $0.01 for the quarter, Horizon missed the Thomson Reuters’ consensus estimate of $0.19 by quite a margin.

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The company’s overall revenue was down 5.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.38 EPS. Naturally enough, investors were shaken, and the stock dropped dramatically. 

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Hold Rating

At its current price, the Horizon penny stock has been given an average recommendation of ‘Hold’ by eight analysts that are presently covering the firm. This hold rating suggests there is a lot left in the tank for Horizon and perhaps that the stock is oversold at present. 

Its current climb back up the charts is indicative of investors’ faith that Horizon Global can turn it around in 2019.

Steel

Based in Michigan, US, the company has been rocked by the American/China trade war along with the tariffs on steel. The political climate gave Horizon an unsteady platform in 2018. 

CEO Carl Bizon discussed the company’s difficult 2018 in a recent press release:

“Horizon Global has experienced challenging conditions in 2018, but we have made considerable progress in improving our operations. With the completion of our Action Plan for the Americas, we have demonstrated the team’s ability to identify opportunities and execute business initiatives that will drive improved performance and profitability.”

Featured Image: Depositphotos © Photodsotiroff

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