Are These The Battery Stocks To Buy Amid EV Revolution?
The gradual shift toward electric vehicles has put battery stocks onto investors’ radar. Automotive companies with technology elements- the electric vehicle stocks are the market’s most loved stocks in the stock market today. With the strong surge in stock prices of Nio (NIO Stock Report) and Workhorse Group (WKHS Stock Report), investors have many reasons to be hopeful about the prospect of the industry. The most direct market response we can expect is that investors will search for the top EV stocks to buy. But electric vehicle manufacturers are also seeing increasing competition and stretched valuation. Investors are therefore turning into some of the “pick and shovel” play to ride along with the EV boom. For this reason, investors have been looking for top battery stocks to buy, because no matter who is leading the EV pack, they will still need batteries.
After all, the shift toward clean energy vehicles is part of the evolution of the automotive market. The significant driver of the high demand for electric vehicles in China, the United States, and globally are making EV stocks at the forefront of gains. As a result, investors who seek to consider a new avenue for investments in the future can also look into the global automotive battery market.
Battery Stocks Could Be The New Gainer Amid EV Revolution
The sale of electric vehicles may not outrun that of conventional combustion engines any time soon. But the truth is, we are increasingly seeing the shift towards EV due to environmental and sustainability reasons. The demand for lower emissions to combat global warming is getting more traction. In addition, more consumers are turning to vehicles that are fossil-fuel-free that would have no emission.
More importantly, the growing cost-effectiveness of lithium-ion batteries is a major driver contributing to the rise of electric vehicles on the road. The improvement in battery tech and lower costs contributed to the rise of EV. Now, batteries are slowly entering the minds of investors. With that in mind, do you have this list of battery stocks to buy during the last quarter of 2020?
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Top Battery Stocks To Watch In 2020: Tesla
Alright, call me a cheater for including Tesla (TSLA Stock Report) on this list. Tesla is not exactly a battery company. The largest EV manufacturer Tesla has set a date for its battery technology day. The event will be taking place on 22nd September 2020 in California. This is a huge deal for investors to learn more about EV technology and how it could affect their profit margins in the long run.
Informally, Tesla has the best battery technology in the auto industry. No doubt, Battery Day is going to be huge and will be heavily scrutinized by Tesla bears. Essentially, it will be a way to show those who have a large amount of cash wrapped up in Tesla that the company is putting that capital to good use. Tesla will probably be using this event to show off the latest iteration of its battery technology.
It would not be surprising if Tesla wants to demonstrate its superiority against its growing list of EV competitors. During the event, investors will likely be excited to see Musk tout the efficiency of Tesla’s battery packs and for the company to talk about the one million mile battery. If investors are convinced with the ideas and hopeful with the execution, it’s not surprising to see another breakout in TSLA stock.
Top Battery Stocks To Watch In 2020: Panasonic Corporation
Panasonic Corporation (PCRFY Stock Report) is a household name that’s been around for as long we all can remember. While the company’s stock performance hasn’t been performing well for the past two years, not all hope is lost. Apart from providing automotive batteries to Tesla, Panasonic is also partnering with Toyota (TM Stock Report) to supply batteries for its electric vehicles. So with tens of thousands of homes potentially implementing a smart home, the partnership is a natural extension.
Last year, both Toyota and Panasonic formed a joint venture for the manufacture of EV batteries. This comes after Panasonic targets to increase its battery capacity by 50 times from what is used in current Toyota hybrid vehicles.
Reports said Mazda, Subaru, and Daihatsu will also be sourcing batteries from this joint venture. Honda already uses Panasonic batteries and it is likely to gain from improved efficiency as a result of this venture. With the list of carmakers on board, would you include PCRFY stock for high powered gains as demand for EV soars?
Top Battery Stocks To Watch In 2020: Enphase Energy
Enphase Energy (ENPH Stock Report) is a leading supplier of solar power system solutions. Enphase’s main business is manufacturing and supplying microinverters, the devices that convert power at the solar panel into the AC power used at home.
The acquisition of SunPower’s microinverter business has served as a catalyst for its stock. From this acquisition, the company proved that it could achieve high margins alongside growing sales, which makes it one of the best battery stocks to watch in the long term.
ENPH stock recently rose to its 52-week high. This came after the company reported strong quarterly results. It has been on a tear ever since. It went from around $5 in early 2019 to nearly $75 now, even after the sell-off in March 2020. Enphase continued to grow revenue despite dealing with component shortages. This suggests that revenue growth would be even higher with the resolution of supply issues after the pandemic. This signals that the company has a long growth runway ahead. That said, is ENPH attractive enough to be included in your watchlist today?