Microvast Skyrockets 119% YTD: Is It a Must-Have Stock Now?

Microvast Holdings MVST shares have experienced outstanding growth over the year-to-date period. It has skyrocketed 119.4% during the period, outperforming the 44.3% rise of its industry and the 15.7% growth of the Zacks S&P 500 Composite.MVST outperformed its competitors, with Cummins’ CMI 22.4% growth and 39.5% rally of Oshkosh OSK.YTD Price Performance Image Source: Zacks Investment Research Recent performance also shows that MVST has outperformed Cummins and Oshkosh. In the past month, the stock has surged 60.4%, outperforming Cummins’ 3.8% growth and Oshkosh’s 4.4% dip.Let us delve deeper to find out whether investors should ride the wave or stay away from it.MVST’s ASSB Technology Strengthens Its Financial PositionThe True All-Solid-State Battery (ASSB) is a safer and more efficient technology that eliminates liquid electrolytes and prioritizes scalability. This technology has boosted the overall demand for battery solutions and yielded tangible results for MVST. In the June-end quarter, the company recorded 9.2% year-over-year top-line growth with its gross margin expanding 220 basis points.The company has managed to control its expenses despite making significant investments in the ASSB technology. In doing so, Microvast has improved its profitability, as testified by its adjusted EBITDA of $25.9 million, which was negative $78.4 million in the year-ago quarter. We expect this new battery tech to provide a higher financial impetus to the company as the demand for safety-sensitive electric vehicles (EVs), grid storage and robotics increases.MVST’s Huzhou Expansion: A Major Boost Within ChinaMicrovast’s plan to expand in its primary market, China, with its Huzhou Phase 3.2 expansion strategy, provides a significant upside to its market share. The expansion will boost the production capacity in Huzhou by 2 GWh to manufacture its high-energy nickel manganese cobalt (NMC) 53.5 Ah cell technology.Per SPER Market Research, the global NMC battery market was valued at $31.1 billion in 2024 and expected to see a CAGR of 15.1% from 2025 to 2034, led by the rapid transition to green energy. Per Mordor Intelligence, the China EV market is expected to witness a CAGR of 17.1% from 2025 to 2030. Banking on these data, it is evident that MVST sits on top of a lucrative market, positioning itself to gain from the rising demand for EVs in the long run.Microvast’s Discounted ValuationMVST is priced at 17 times forward 12-month EPS, significantly lower than the industry’s average of 30.9 times. Microvast’s trailing 12-month EV-to-EBITDA ratio is 7, which is below the industry average of 42.6. For a capital-intensive company like MVST, discounted valuation is appealing since it suggests that the market might be overlooking or underpricing its operational strength or future growth capability. For growth investors, this gap will appear as a goldmine for massive returns when the valuation aligns with the industry average over time. Image Source: Zacks Investment Research  Image Source: Zacks Investment Research MVST’s Top & Bottom-Line Outlook Appears StrongThe Zacks Consensus Estimate for the company’s 2025 revenues is $462.3 million, hinting at 21.7% year-over-year growth. For 2026, the top line is set at $563.5 million, suggesting a 21.9% year-over-year increase.The consensus estimate for MVST’s 2025 EPS is kept at 19 cents, implying a 170.4% year-over-year upsurge. For 2026, the bottom line is estimated at 29 cents per share, indicating a 52.6% year-over-year hike.Over the past 60 days, one EPS estimate each for 2025 and 2026 has been revised upward with no downward adjustment. The Zacks Consensus Estimate for 2025 earnings has jumped 46.2% and the same has rallied 20.8% for 2026. These upward revisions highlight analysts' confidence.Buy Microvast NowMVST is utilizing its safer and more efficient ASSB technology to cater to the rising demand for battery solutions, boosting its top line and gross margin. Hiking its production capacity through the Huzhou Phase 3.2 expansion positions it well to benefit from the growing NMC market as China’s EV demand surges.Microvast appears to be fundamentally strong, and its positive EPS revisions reflect analyst confidence. We can also conclude that the stock appears to be heavily discounted, which should attract growth-oriented investors.This favorable valuation and optimistic top and bottom-line outlook compel us to recommend that investors buy the stock right now.Microvast flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cummins Inc. (CMI): Free Stock Analysis Report Oshkosh Corporation (OSK): Free Stock Analysis Report Microvast Holdings, Inc. (MVST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks