EV Charging: Big Opportunities for These 7 Stocks
If global governments want millions of electric vehicles on the roads, EV charging stations are a necessity. As I noted on Sept. 7, “The Biden Administration has a goal of building out a national network of 500,000 EV charging stations. However, if the Administration wants to see higher EV adoption rates, those EV charging stations are needed yesterday.” All of which is great news for EV charging stocks.
Even analysts at TD Cowen just noted, EV charging infrastructure is “critical” in driving further EV adoption. In fact, according to the firm, by 2030 the U.S. will need about 1.7 million charging ports just to keep pace with the growing fleet. And, it may require a total U.S. investment of $104 billion through 2030.
That being said, investors may want to seriously consider these seven EV charging stocks.
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ChargePoint (CHPT)
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While ChargePoint’s (NYSE:CHPT) chart has been a disaster, don’t write it off.
For one, TD Cowen just initiated coverage of ChargPoint (CHPT), with an outperform rating with an $11 price target. “Minimal capex is required in the ChargePoint business model as the company relies on its commercial, hospitality, parking, fleet, and other customers to effectively crowdfund the buildout of EV-charging infrastructure,” they said, as quoted by CNBC.
Two, with a growing need for millions of EV charging stations, CHPT could be a standout winner. Three, the CHPT stock is showing signs of life again. After plunging to $2.40, it just recently popped to $3.08. From here, I’d like to see it refill its bearish gap around $7.41.
Blink Charging (BLNK)
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After plummeting to a low of $2.25, Blink Charging (NASDAQ:BLNK) is showing signs of life again, too. All on the realization we need millions of EV charging stations set up yesterday. Helping, the company just announced it launched its EQ 200 charger in the UK and Ireland, which could drive substantial revenue for the company. After all, according to Seeking Alpha, about 17% of new auto registrations were EVs last year.
UBS analysts also gave BLNK a buy rating believing BLNK could achieve breakeven adjusted EBITDA a year ahead of expectations. Earnings haven’t been too shabby either. In its second quarter, the company reported that revenues jumped 185% year-over-year to $32.8 million. Service revenue was also up a stunning 211% to $7 million.
Blink also raised its 2023 revenue guidance to a new range of $110 million to $120 million from a prior range of $100 million to $110 million.
EVgo (EVGO)
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EVgo (NASDAQ:EVGO) is also showing signs of life again. After dropping to about $2 a share, it’s now back to $2.49. From here, I’d like to see it retest prior resistance around $3.25 initially.
Earnings haven’t been too shabby either. In its last quarter, the company posted an EPS loss of either cents on $50.6 million in sales. That was an increase of 457% year over year. Meanwhile, the Street was looking for a 26-cent loss on sales of $29.5 million.
Even better, the company now expects to see revenue of between $120 million and $150 million for the full year. That’s up from $105 million to $150 million in prior guidance. It also expected an adjusted EBITDA loss of between $68 million and $78 million, which is narrow than its prior forecast, as well.
Beam Global (BEEM)
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Also showing signs of life again is Beam Global (NASDAQ:BEEM).
After dropping from about $12.50 to a low of $5.31, it’s starting to pivot higher. Last trading at $6.11, I’d like to see BEEM retest prior resistance around $8 initially.
Earnings haven’t been too shabby. In fact, its EPS of a 32-cent loss was in line with expectations. Revenue, which is up 379% year over year at $17.82 million, beat expectations by $3.8 million.
The company posted record first half revenue of $30.8 million, a 312% increase over the first half 2022. It posted a gross margin improvement of 12% as a percentage of revenue over the same period prior year, according to the company.
Allego (ALLG)
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With about 35,000 charging ports across 15 countries, Allego (NYSE:ALLG) just posted 34.6% year over year revenue growth. Better, its first half charging revenue jumped 113.1% year over year, as well.
It also just partnered with fueling company Go’on to make EV charging far more accessible for drivers in Denmark.
Plus, has a strong backlog of 10,800 charging ports. Once they’re all operational, the company could easily see higher revenue growth, as noted by InvestorPlace contributor Vandita Jadeja.
Direxion Daily Electric and Autonomous Vehicle 2x Shares (EVAV)
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Or, if you want to diversify with top EV names at a low cost, consider the Direxion Daily Electric and Autonomous Vehicle Bull 2x Shares (NYSEARCA:EVAV).
With an expense ratio of 1%, the EVAV ETF invests in EV and autonomous vehicle stocks that derive at least 50% of their revenues from related activities. This includes companies that create technology for electric or autonomous vehicles, such as charging docks and batteries, as noted by Direxion.com.
Autonomous & Electric Vehicles ETF (DRIV)
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Or, take a look at the Autonomous & Electric Vehicles ETF (NASDAQ:DRIV). With an expense ratio of 0.68%, the ETF invests in companies that produce EVs and related components.
After plunging from about $27.50 to a low of $20.62, the ETF is starting to push higher again. From a current price of $22.31, I’d like to see it initially retest prior resistance around $23.50. If it does, this will be one of the best EV charging stocks out there.
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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