3 EV Charging Stocks That Will Electrify Portfolios This Year
With soft demand for electric vehicles, EV charging stocks are down in the dumps. But don’t write them off just yet. Instead, you may want to buy them at their lowest points.
As we’ve learned from investors, like Sir John Templeton, buy excessive pessimism, as he proved useful in 1939. In fact, in 1939, Europe was decimated by war. So, Templeton bought every European stock trading below $1.00 a share and made a fortune. Even when all seemed lost, there was an opportunity.
That same idea applies to EV charging stocks. Those stocks may be decimated now, but eventually, the pessimism will give way to optimism. Remember, once the Federal Reserve does start to cut rates, hopefully this year, EV sales could come back strong. Also, as I noted on Feb. 21, “half of United States households now considering an EV (Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), or HEV (Hybrid Electric Vehicle) for their next vehicle purchase.”
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That being said, here are a few of the top EV charging stocks you may want to consider.
Blink Charging (BLNK)
Source: David Tonelson/Shutterstock.com
Blink Charging (NASDAQ:BLNK) just posted preliminary sales numbers for the fourth quarter of 2023, and full-year 2023 that crushed expectations. For its fourth quarter, the company says sales should exceed $42 million, which is a company record, as noted in a company press release. It’s also well above Street expectations for $34 million.
For full year 2023, Blink says sales should be above $140 million, which puts it above its prior guidance range of $128 million and $133 million. Better, the company reiterated its target of achieving a positive Adjusted EBITDA run rate by December 2024.
And, as noted by President and CEO Brendan Jones, “We saw strong demand for both our equipment and services. This is the result of consistent and systematic steps that we took to strengthen our product portfolio and service offerings, supported by our vertical integration strategy and dedicated customer service team.”
EVgo (EVGO)
Source: Tada Images / Shutterstock.com
On hopes its results could be as strong as Blink Charging, EVgo (NASDAQ:EVGO) was also bid higher. Last trading at $2.54, if it can break above resistance at $2.69, I’d like to see it rally back to $3.20 near term. Helping, when the company posts earnings in early March, it expects to meet or exceed 2023 financial and operating guidance.
Remember, in November, EVGO forecast revenue of $148 million to $158 million, with adjusted EBITDA falling in a range of -$62 million and -$66 million. EVGO should also benefit from news that the U.S. Transportation Department will award $148.8 million for projects in about 20 states to repair or replace about 4,500 EV charging stations.
Beam Global (BEEM)
We can also look at Beam Global (NASDAQ:BEEM), which found strong support at its 50-day moving average again. From its current price of $6.98, I’d like to see it challenge $8.20 again soon.
Helping, over the last few weeks, the company announced the U.S. Department of Homeland Security ordered 47 Beam EV ARC sustainable off-grid charging systems and 16 ARC Mobility trailers to “enable efficient transportation of the products,” as noted by Seeking Alpha.
In addition, it just secured solar-powered EV charging systems from six federal clients that just place first-time orders. Plus, according to Desmond Wheatley, CEO, “We expect to continue to deepen and expand our government business in the U.S. and globally.”
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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