Can These EV Charging Stocks Power Ahead?
2020 has seen an explosive rise in electric vehicle stocks as investors continue to bid these stocks on expectations that the automotive industry is going electric. When you have big names like Tesla (TSLA Stock Report) and recently listed Xpeng Motors (XPEV Stock Report) making new highs, you know you have to strike while the iron is red-hot. So here comes the question you all have; “What are the best EV stocks to buy now?”
On Monday, we saw DPW Holdings (DPW Stock Report) skyrocketed nearly 240%, making it one of the best performers in the U.S. stock market. This came after the company established a program in getting its electric vehicle (EV) chargers into national fast-food restaurants. That forms a part of the network with over 1,000 locations. With such explosive gains among EV charging stocks, there’s no question investors want a piece of these hotcakes while the music is still on.
Will EV Charging Stocks Run Out Of Charge?
It is times like this that day traders and scalpers are taking full advantage of EV stocks right now. The FOMO is also real among growth and long-term investors. You could say that trading activities on Monday were so hyped up. Investors were flocking to any name that has a press release mentioning “EV” or “EV Charging Stations”.
But let’s not get clouded by the hype. We are here right now because there’s true potential in the EV space. Global warming poses a real threat to us and our children, and you know it. When key industry players like General Motors (GM Stock Report) and Ford (F Stock Report) have also begun transitioning, it is time to pay attention to the EV space. If you would like to gain exposure to this burgeoning industry, could now be the best time? After all, the ongoing interest in the EV space will likely persist for quite some time. Now that the euphoria from the EV manufacturers has spilled over to the electric vehicle charging space, could these 3 EV charging stocks be worth adding to your portfolio today?
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Electric Vehicle Charging Stocks #1 Blink Charging
Blink Charging (BLNK Stock Report) jolted 48.3% higher again on Monday, reaching an intraday market valuation of $1.05 billion. And if you have been a follower of StockMarket.com, you may know that since we covered BLNK stock back in June, the stock price has gone up by over 400%. It may be even harder to believe that the stock was only trading around $1.30 earlier this year. Blink Charging operates a network of nearly 15,000 electric vehicle charging stations as of December 31, according to the company. With the rise in adoption of EVs, it is no surprise that the company has been benefiting. In its third-quarter earnings report, Blink saw product sales rising 74% from the same quarter a year ago.
“Whether it’s at a multifamily residential facility, single-family home, retail market, hotel, or if you’re driving along a highway and need to supercharge, we’ll have a solution for you as well….Our model is very simple,” Michael Farkas, Chief Executive of Blink Charging
Last week, the company unveiled a new cable management system for use with both new Blink charging stations and retrofit installations of its IQ 200 charging stations. The company also said the system would help with market demand for flexible EV charging equipment configurations. Unlike most of the other EV stocks, with Blink, you don’t have to bet on brand names or consumer taste. After all, EV users need charging stations whichever make and model they drive. With that in mind, is BLNK stock the best bet on the secular EV trend?
Electric Vehicle Charging Stocks #2 Switchback Energy
Another EV charging stock jolting higher is Switchback Energy (SBE Stock Report). The company is another EV special purpose acquisition company (SPAC) that is skyrocketing along with other EV related stocks. For investors who come across this company for the first time, here’s what to know. Switchback Energy has signed a merger deal with ChargePoint to take the latter public. The deal values ChargePoint at $2.4 billion and will provide it with $683 million in cash for operations. Similar to Blink Charging, ChargePoint was founded in 2007 and has been expanding ever since. ChargePoint is currently operating the largest EV charging network in the U.S. and is expanding in Europe as well. These make it a top EV charging stock that is worth a closer look.
From a fundamental perspective, ChargePoint’s business should be strong as the U.S. is clearly adopting EVs quickly. The strong growth of EVs will undoubtedly result in strong demand for charging stations, and the company is well-positioned to benefit from such a shift. The company’s stock price made a 30% jump after a tweet from Citron Research.
With a revenue of $147 million last year, ChargePoint is a more mature company than many other EV stocks out there. The company expects revenue to grow rapidly in the coming years, growing by 60% annually from 2021 to 2026. With ChargePoint’s leadership position and the funds it will obtain from the merger deal, would you say SBE stock is a steal right now?
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Electric Vehicle Charging Stocks #3 FuelCell Energy
I know what you are thinking, FuelCell Energy (FCEL Stock Report) isn’t a company that is working on charging stations. But it’s meteoric rise among other battery makers are also worth the mention. The company led the pack, closing 54% higher during Monday’s intraday trading. Now you may be thinking, what’s the driving force behind such a surge?
The truth is, no one knew exactly the reasons behind such a rally. However, what we do know is, pretty much every stock that’s related to EV, fuel cells, batteries, or charging stations went up in concert on Monday.
Renewable energy stocks have gained a lot of attention in recent months. That’s partly due to expectations that a Biden administration will accelerate the switch to renewable energy. Nevertheless, one should be aware that the implementation of new initiatives can take time. FuelCell’s third-quarter results may have disappointed some investors. But many have looked past that and are now focusing on the future potential of the company. Considering that, will you be adding FCEL stock to your watchlist?