In this article, we shall discuss the 10 best EV charging stocks to buy now. To skip our detailed analysis of the EV Charging sector in 2022, go directly and see 5 Best EV Charging Stocks to Buy Now.
In the past decade, electric vehicles (EVs) have gone from a rare, peculiar sight on even the busiest freeways to an increasingly affordable and preferable alternative for the average car buyer. In 2020, EV sales set unprecedented records that conclusively surpassed analyst expectations, especially in countries with an eager customer base and government policies facilitating the transition. Hence, due to consumer enthusiasm and favorable government regulations and incentives, the number of industry players committed to phase out the internal combustion engine (ICE) seems to grow exponentially every five years. Furthermore, according to a report by McKinsey and Company, 45% of customers in Europe prefer to take the EV route when purchasing a vehicle.
The Inflation Reduction Act in the United States, and commitments by EU to render the ICE obsolete by 2035 point towards significant tailwinds for the EV charging sector. Moreover, the report also ascertains that 75% of European new car sales by 2030 will be EVs, hinting at continued growth in the EV market. This growth has catalyzed a race to build enough public charging stations to meet ever-increasing demand, and ultimately aid in meeting carbon emission reduction targets. Popular EV charging stocks include Tesla Inc. (NASDAQ:TSLA), ABB Ltd. (NYSE:ABB), and Shell plc (NYSE:RDS).
The EV Charging Sector in America: An Overview
Although the United States has only 5 percent of the global population, it contributes more than 28% to global carbon emissions. To curtail emissions and meet reduction targets by 2050, the Biden administration signed the Bipartisan Infrastructure Bill into law. The Act aims to inject more than $7.5 billion into the EV market to develop the country's EV charging infrastructure. The objective is to install more than 500,000 public chargers across the nation by 2030. However, a report by McKinsey estimates that even if half of all vehicles are EVs by 2030 - in line with federal targets- America is likely to require more than 1.2 million public EV chargers and 28 million EV chargers by 2030. The report highlights that merely setting up charging stations at random will not be enough to incentivize EV growth. To keep EVs running, public charging stations need to be economical, equitably distributed, appealing to use, and wired to a solid and dependable power grid. There is also a need to present a viable business opportunity and incentivization structure for companies that are expected to operate them. In a potential scenario where the country achieves the current federal EV sales target, the report predicts that about 15 percent of all vehicles on the road would be EVs.
For this article, we looked at Insider Monkey’s database which tracks 920 elite hedge funds and identified some of the most popular EV charging stocks in this data. Then, we picked 10 of these stocks with strong fundamentals, positive analyst ratings, or a favorable hedge fund sentiment.
The stocks have been ranked based on the number of hedge funds which hold stakes in them, from lowest to highest.
Best EV Charging Stocks to Buy Now
10. Wallbox N.V. (NYSE:WBX)
Hedge Fund Holdings: 4
Based in Barcelona, Wallbox (NYSE:WBX) is a Spanish smart electric vehicle charging and energy management company which provides, designs, manufactures, and distributes EV charging technologies.
On November 22, Northland analyst Abhishek Sinha initiated coverage of Wallbox (NYSE:WBX) with an Outperform rating and a $16 price target. According to the analyst, the company has an exceptionally robust business model with impressive growth rates, solid growth margins, and a clear and viable path to profitability. Sinha also points out the Wallbox's (NYSE:WBX) current valuation offers an excellent entry for investors looking to capitalize upon the EV charging market in 2023.
9. Blink Charging Co. (NASDAQ:BLNK)
Hedge Fund Holdings: 7
Based in Miami Beach, Florida, Blink Charging (NASDAQ:BLNK) is an American electric services company which procures, distributes and develops EV charging stations and equipment. Blink Charging (NASDAQ:BLNK) was able to maintain hedge fund sentiment around its stock, with 7 funds long the stock in both Q2 and Q3 of 2022. The company reported a total revenue of $17.25 million in Q3 2022, beating consensus $15.38 million.
Blink's (NASDAQ:BLNK) recent acquisition of SemaConnect, complete rejuvenation of manufacturing capabilities, and expansion of the company's network footprint is expected to revitalize long-term profitability. And although cash reserves are currently depleted after the acquisition, the company is well leveraged to benefit from long-term tailwinds from growing EV demand, favorable governmental incentives, federal funding, and network expansion.
8. Workhorse Group Inc. (NASDAQ:WKHS)
Hedge Fund Holdings: 12
Headquartered in Sharonville, Ohio, Workhorse Group Inc. (NASDAQ:WKHS) is an American company which specializes in original equipment manufacturing. The company has a diverse product portfolio which consists of electric delivery vans, drones, and telematics, to EV charging stations. In the third quarter of 2022, investor interest around Workhorse Group Inc. (NASDAQ:WKHS) increased, with 12 hedge funds long the stock, up from 10 funds in the preceding quarter.
On November 25, B. Riley analyst Christopher Souther lowered the price target on Workhorse Group Inc. (NASDAQ:WKHS) to $5 from $6, maintaining a Buy rating on the shares post the company's Q3 earnings results. The analyst noted that despite testing issues with the C1000, the company was able to maintain its 2022 revenue guidance. Souther ascertains that Workhorse Group Inc. (NASDAQ:WKHS) is likely to abandon the C1000 restoration project as new products are gaining momentum in the market, accumulating positive reviews from investors and customers. According to Souther, the analyst day the company planned will prove to be a catalyst for the stock.
7. ChargePoint Holdings Inc. (NYSE:CHPT)
Hedge Fund Holdings: 13
Based in Campbell, California, ChargePoint Holdings Inc. (NYSE:CHPT) is an American EV infrastructure manufacturing company which operates the largest online network of independently owned EV charging stations operating in more than 13 countries. As of the third quarter of 2022, ChargePoint Holdings Inc. (NYSE:CHPT) beat EPS estimates of -$0.19 by $0.03, posting earnings of -$0.16 per share. The company delivered growth exceeding 90% year-over-year in its Q3 earnings returns on December 1.
On December 5, DA Davidson analyst Matt Summerville lowered the price target on ChargePoint Holdings Inc. (NYSE:CHPT) to $18 from $20, maintaining a Buy rating on the shares. The analyst reduced revenue expectations, citing an offset by an acceleration in economies of scale as the company builds operational momentum and re-prioritizes spending following completion of a major hardware development life cycle for its global L2AC platform. Summerville emphasized, however, that the current ChargePoint Holdings Inc. (NYSE:CHPT) share levels are an ideal entry point for the long-term investor. Like Tesla Inc. (NASDAQ:TSLA), ABB Ltd. (NYSE:ABB), and Shell plc (NYSE:RDS), ChargePoint Holdings Inc. (NYSE:CHPT) is one of the most prominent EV charging stocks in the world.
6. EVgo Inc. (NASDAQ:EVGO)
Hedge Fund Holdings: 14
Based in Los Angeles, California, EVgo Inc. (NASDAQ:EVGO) is an American EV DC fast charging station network, with more than 850 charging locations across the United States. In November, the company entered into an equity distribution agreement under which it revealed plans to sell up to $200 million worth of Class A common stock. EVgo Inc. (NASDAQ:EVGO) plans to use the additional capital for general corporate affairs, repayment of loans, additions to working capital, and potential investments in expansion.
EVgo Inc. (NASDAQ:EVGO) ended Q3 2022 with an expanding top-line, which it owes to an ever-increasing DC stall count and customer base. The company has also signed multiple commercial agreements, which have facilitated the growth of its development pipeline. And although there is still significant pressure on margins, EVgo Inc. (NASDAQ:EVGO), like Like Tesla Inc. (NASDAQ:TSLA), ABB Ltd. (NYSE:ABB), and Shell plc (NYSE:RDS), is well-leveraged to resist the ongoing macroeconomic headwinds perpetrated by the Russia-Ukraine crisis, causing the stock to remain fundamentally attractive.
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Disclosure: none. 10 Best EV Charging Stocks to Buy Now is originally published on Insider Monkey.