timothy sykes logo

Stock News

ESS Tech Shares Surge on Strategic Battery Deal and Financial Boost

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 10/19/2025, 9:15 am ET 10/19/2025, 9:15 am ET | 6 min 6 min read
ESS Tech Shares Surge on Strategic Battery Deal and Financial Boost Thumbnail

ESS Tech Inc.’s stocks have been trading up by 13.63 percent amid strong earnings reports indicating robust company growth.

Industrials industry expert:

Analyst sentiment – positive

ESS Tech, Inc. (GWH) is currently in a precarious market position, faced with highly unfavorable profitability ratios, including an EBIT margin of -1,255.6% and EBITDA margin of -1,169.8%. The company’s gross margin stands at an alarming -629.6%, indicating that the core business operations are significantly unprofitable. Financially, ESS Tech struggles with revenue per share at a meager $0.44, and a price-to-sales ratio at 12.15, which is markedly high for a company with negative growth trajectory. Furthermore, the negative return on equity of -207.48% and negative free cash flow underscore a challenging fiscal environment. This analysis reflects a concerning standing in both financial health and operational profitability metrics.

In terms of technical analysis, ESS Tech’s recent weekly price trend shows significant volatility. The initial spike from October 13th with a high of $10.4 shifted sharply downward to close at $5.17 by October 17th, indicating a dominant bearish trend. Volume spikes, coinciding with price drops, suggest selling pressure is overwhelming buyers. The descending pattern following the surge post-announcement of strategic projects points to corrective movements. Traders should focus on a short-sell strategy near the resistance level of approximately $9.00, targeting the support level around $5.00. With evident price volatility from trading sessions, awareness of intraday fluctuations could provide opportunities for short positions.

ESS Tech has seen notable news with a positive tilt due to the recent $40 million financing transaction and the strategic Project New Horizon. The company’s share price responded dramatically with a surge of nearly 141% upon the announcement of a 10-year, 50 MWh energy storage deal with Salt River Project. This momentum is reflective of the market’s optimism towards non-lithium energy solutions. Roth Capital’s upgrade to a “Buy” rating and a significant increase in price target further substantiate potential bullish sentiment. However, given sector benchmarks, ESS Tech remains speculative, as its fundamentals and industry competition in Industrials present challenges. Traders should monitor psychological resistance around $3.50, mindful of earnings revisions and sector performance in industrial goods. The overall outlook cautiously leans towards upside potential contingent upon execution of strategic initiatives.

Candlestick Chart

Weekly Update Oct 13 – Oct 17, 2025: On Sunday, October 19, 2025 ESS Tech Inc. stock [NYSE: GWH] is trending up by 13.63%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

ESS Tech has experienced remarkable financial shifts. The company’s closing stock price at $9.89 on October 13, 2025, was a high point, only to descend in the following days, reflecting close at $5.72 by October 15. This volatility is an indicator of the prevailing market excitement coupled with investor apprehension around ESS’s future moves. Negative key profitability ratios with EBIT margin at -1255.6 and an operating loss of $11M are concerning, yet they underscore the aggressive pivot strategy ESS is undertaking. The company faces challenges with substantial leverage, indicated by a 12% leverage ratio and a precarious quick ratio of 0, demanding robust financial stewardship in its expansion.

Despite profound swings in daily opens and closes, ESS Tech’s innovative steps, particularly the announced financial transactions have catalyzed hope. These steps could be pivotal in restructuring its profile from a liquidity-constrained entity to a financially secure enterprise poised for growth. The establishment in collaboration with esteemed partners such as Salt River Project and endorsements through capital market upgrades augments ESS Tech’s credibility and growth potential significantly.

More Breaking News

Conclusion

ESS Tech’s endeavors to innovate and entwine with influential partners are strategic maneuvers aimed at transforming its industry standing. While grappling with deep financial deficits, there’s unequivocal optimism hinging on their bold foray into sustainable battery solutions via non-lithium, long-duration storage technologies. Such projects not only align with global sustainability goals but are endorsed by capital markets as evidenced through upgraded stock valuations.

This engagement demonstrates ESS’s capacity to leverage strategic deals, with the potential to navigate out of current financial trials by delivering value-driven growth. The stock’s fluctuating price model is demonstrative of a market re-evaluating its stance on the company’s present and future trajectory. As millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” Moving forward, ESS Tech’s focus must stay on executing their contracts, utilizing the financial boost, and solidifying market confidence in its visionary projects. As it stands, ESS is on a transformative path with high stakes in play, where success of upcoming pilot projects under careful execution could revolutionize its market perception and financial health.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”