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ESS Tech Unveils $40M Deal; Shares Soar Amid New Horizon Contract

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Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 10/19/2025, 12:19 pm ET 10/19/2025, 12:19 pm ET | 5 min 5 min read
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ESS Tech Inc.’s stocks have been trading up by 13.63 percent amid positive sentiment from recent breakthrough energy storage innovations.

Industrials industry expert:

Analyst sentiment – positive

ESS Tech, Inc. (GWH), currently grapples with daunting financial signals, evidenced by critical metrics such as an EBIT margin at -1255.6% and a profit margin at -1217.22%, signifying inability to cover operational costs. With revenue of $6.295 million and a troubling enterprise value $44.9 million, the price-to-sales ratio stands at an elevated 12.15, reflecting misalignment between market valuation and earnings capability. ESS’s financial strength is moderate with a total debt-to-equity ratio of 0.26 yet suffers from a weak current ratio of 0.5, indicating liquidity challenges. These figures suggest a company struggling to gain fiscal traction amid significant operational inefficiencies.

Recent weekly trading data for GWH reveals a bearish trajectory, with prices falling from $9.89 to $5.17. Despite a potential recovery attempt at $5.28, the closing price reverted to $5.17, highlighting resistance near $5.5 and indicating market hesitation. The average weekly volume suggests waning interest, exacerbating the downward pressure. A potential rebound could occur if volume supports a breach above $6.00; however, the prevailing downtrend suggests shorting at resistance levels such as $5.50 could prove profitable, assuming further decline undercuts $4.50.

ESS Tech capitalizes on strategic milestones, recent news indicating a $40 million financing closing and a landmark 50 MWh project, raising shares by over 100%, indicative of renewed investor confidence. Upgrades by Roth Capital, accentuating a price target increase to $3.50, suggest an optimistic outlook aligned with significant project announcements involving major entities like Google. ESS Tech’s strides in securing a 10-year battery supply deal present a promising catalyst enhancing competitiveness. Resistance near $3.50 becomes pivotal; successful clearance could signal bullish intent, solidifying momentum captured in broader industrial benchmarks. Overall, the strategic pivots and high-profile contracts anchor a positive market repositioning.

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 captured the market’s attention with robust financial developments. Recently, they announced closing a $40M financing round designed to strengthen their balance sheet, which is critical in supporting their strategic shift towards U.S.-manufactured energy solutions. Complementing this financial reinforcement, Roth Capital hiked its stock rating to ‘Buy’, with a projected share price of $3.50. Such moves have successfully generated substantial market enthusiasm, driving up share valuations.

Analyzing the financial chart data, a noticeable trend reveals fluctuating stock prices. Initially, the stock experienced highs peaking at $10.4, but more recent data indicated a drop to $5.17. This volatility signals the market’s reaction to ongoing strategic announcements from GWH. However, the broader financial struggles remain evident. The company’s financial reports highlight substantial financial losses with comprehensive revenue of $6.3M but sizable negative profitability ratios including notable high debt levels.

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The financial ratios further underpin the struggle, with negative margins across multiple fields and a negligible current ratio of 0.5 indicating liquidity worries. Despite these challenges, a holistic market strategy, backed by fresh funding and shareholder confidence boosted by a higher stock rating, hints at a potential turnaround.

Conclusion

ESS Tech’s strategic maneuvering amidst recent agreements, elevated stock rankings, and substantial investments have catalyzed positive market reverberations, evidenced by an over 150% surge in stock valuation. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” While the financials depict prevalent profitability challenges, recent funding and strategic collaborations bolster longer-term bullish outlooks. Consequently, GWH stands at the cusp of innovation, leveraging a trajectory anchored by long-duration energy initiatives to redefine its industry stance and trading appeal. Market participants should closely monitor ongoing developments, as momentum from both technological advancements and renewed financial backing represents a paradigm shift in GWH’s growth story.

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.

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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.
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* 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 .

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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”