The 3 Most Undervalued EV Charging Stocks to Buy in January
Who doesn’t love saving money when it comes to finding great deals? Buying the dip on undervalued EV stocks is a smart move this month.
With global leaders demanding millions of EVs on the roads, we’ll need a significant number of charging stations. At the moment, according to a McKinsey report, the U.S. has a goal of having 50% of all vehicles sold be electric by 2030. But again, for that to happen, we need a good deal of EV charging stations. To help, the Infrastructure Investment and Jobs Act will provide $7.5 billion to fund 500,000 public EV stations. Unfortunately, that’s not enough.
McKinsey adds that if the U.S. wants to reach that 50% goal, it will need about 1.2 million public, and 29 million private charging stations.
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“That’s approximately 20 times more charging stations than are currently installed in the United States in 2023,” added Blink Charging.
Also, we must consider that the unreliability and inaccessibility of charging stations are some of the key hurdles for greater EV adoption. So, either the U.S. gets serious about EV charging stations, or the goal of 50% goes right out the window.
As that becomes far more apparent, investors may want to consider these undervalued EV charging stocks to buy and hold long term.
EVgo Inc. (EVGO)
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Undervalued EV charging stocks like EVgo (NASDAQ:EVGO) may not have the most attractive chart, but give it time. At the moment, it’s technically oversold on relative strength (RSI), MACD, and Williams’ %R at $2.56. From here, I think it could bounce back to at least $3.78 initially. Eventually, as demand for charging stations intensifies, it could rally back to $6.
Additionally, earnings haven’t been too shabby. In its most recent quarter, the company posted an EBITDA loss of $14.2 million on sales of $35.1 million. That was far better than expectations for a loss of $18.6 million on sales of $30 million. At the time, it also had 3,400 charging stalls in operation or under construction, which was up 31% year over year (YOY).
These days, it has 3,500 stalls in operation or under construction. Further, the company now anticipates full-year 2023 financial and operating results that meet or exceed guidance ranges. In November, it had forecast revenue of $148 million to $158 million, with adjusted EBITDA falling in a range of -$62 million and -$66 million.
Blink Charging (BLNK)
Source: David Tonelson/Shutterstock.com
Another one of the most undervalued EV charging stocks is Blink Charging (NASDAQ:BLNK).
Even though its chart is just as disastrous, don’t write this one off either. And, analysts at Needham turned bullish on BLNK, pointing to better execution and communication.
“BLNK’s revamped leadership team has shown improved execution and crisper investor communication and benefits from low expectations offsetting telegraphed dilution, with a $100M raise in 1H24 marking BLNK’s last capital raise in our model,” BLNK said, as quoted by Seeking Alpha. Further, analysts now have a $7 price target on the $2.30 stock.
And in late 2023, BLNK raised its full-year revenue guidance to $128 million to $133 million, as compared to its earlier forecast for $110 million to $120 million. Also, it expects to be “on an adjusted EBITDA break-even run rate in December of 2024.”
Beam Global (BEEM)
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Consider Beam Global (NASDAQ:BEEM), whose EV ARC is the first off-grid, rapid deployment EV charging system that draws power from solar panels.
While BEEM’s chart is just as ugly at the moment, potential lurks.
First, the company just received a $7.4 million order from the U.S. Army for 88 of its off-grid ARC charging systems. Additionally, it could see even more orders.
“The EV ARC systems support Executive Order 14057 calling for 100% zero-emission federal fleet light duty vehicle acquisitions by 2027 and will support the growing fleet of zero emission vehicles (ZEVs),” as noted in BEEM’s press release.
Also, it’s seeing multiple orders from other federal agencies, including the General Services Administration (GSA), Sandia National Laboratories (SNL), and the U.S. Army Corps of Engineers (USACE). Other orders are from several U.S. Departments, including Department of Energy (DOE), U.S. Department of Energy, Office of Legacy Management (LM), U.S. Department of Homeland Security (DHS), U.S. Department of Veterans Affairs (VA), U.S. Marine Corps (USMC), and U.S. Navy Facilities (NAVFAC).
In short, don’t write BEEM off either, as it brims with potential.
On the date of publication, Ian Cooper did not hold (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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