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© Reuters. ENGlobal: Is now a good time to buy stocks?
Although ENGlobal (ENG) has been investing heavily to take advantage of new business opportunities, the company’s revenue declined in the last quarterly report. In addition, given that the company has not yet generated profits, its stock price appears to be overvalued at its current price level. Let’s take a closer look. ENGlobal Corporation (ENG), headquartered in Houston, Texas, was founded in 1985 as an energy and automation service provider, operating through engineering, procurement and construction (EPCM) and automation departments in the United States and internationally. As investors are increasingly optimistic about the prospects of the clean energy industry, ENG’s stock price has soared by 193.6% in the past year.
However, due to operational restrictions caused by the COVID-19 pandemic, the company’s business development efforts have been severely hindered. ENG’s commercial revenue in the first quarter of 2021 fell by 39.1% year-on-year, and its stock price has fallen by 28.1% in the past three months.
Although the company’s efforts to provide its US customers with innovative Haldor Topsoe technology may significantly expand its market reach, its weak financial position poses a significant risk to its prospects. ENG recorded a significant loss in its last reporting quarter.
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