3 EV Charging Stocks to Buy and Hold For the Next 3 Years
The ongoing electric vehicle revolution provides plenty of opportunities for investors. Whether it’s electric car producers, battery manufacturers, software providers, EV charging stocks, or lithium mining companies, there are myriad ways to play growth in this space.
However, it’s increasingly my view that many EV charging companies may be better valued and better positioned for long-term growth than their EV producer counterparts.
The Biden administration has increased federal funding by $2.5 billion for an expanded U.S. EV charging network this year. Additionally, their goal is for 67% of new cars to be electric by 2032. This presents a significant opportunity in the EV charging sector, given the current scarcity of charging units.
Amidst this high-growth space, attractive opportunities in EV growth stocks remain, exemplified by these three noteworthy EV charging stocks to buy.
Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) presents an attractive opportunity as an undervalued EV charging stock. Notably, the company is set to launch a 240-kilowatt direct current fast charger equipped with the North American Charging Standard connector (NACS) and the Connected Charging System. While NACS was pioneered by Tesla (NASDAQ:TSLA), Blink Charging now employs it for their ports, leveraging Tesla’s open-source approach and positioning itself as an industry pioneer.
Underpinned by growing EV adoption and charging demand, BLNK is poised for substantial gains. With an AAA partnership and a Tesla-compatible fast charger launch, Q1 revenues surged 121% to $21.7 million year-over-year. Service revenues rose 216% to $4.8 million, network fees jumped 911% to $1.6 million, and gross profits climbed 186% to $4.5 million. CEO Brendan Jones targets $100-110 million in 2023 revenues and over 30% gross margin.
ChargePoint (NYSE:CHPT), a former special purpose acquisition company, has experienced gradual growth. Despite its current lack of profitability, it holds promise for future expansion, offering an innovative approach with its unique alternative current Level 2 chargers designed for both residential and commercial use. These chargers distinguish themselves through their global presence and widespread adoption.
Anticipating robust global expansion driven by surging EV demand and increased charging infrastructure, ChargePoint is poised for growth. While Q1 earnings led to a stock decline, Gabelli Funds analysts are supportive. Q1 revenue exceeded projections, and the company plans a substantial EBITDA loss reduction by year-end. With a strong foothold in the U.S. and Europe, CHPT is well-positioned for amplified revenue growth.
EVgo, Inc. (EVGO)
In a tough market last year, EVgo, Inc. (NASDAQ:EVGO) stock is consolidating for a potential bullish breakout. As a key player in the EV revolution, EVgo boasts over 3,100 DC fast-charging stalls. Q1 earnings show a robust 283% year-over-year revenue surge to $27.3 million, exceeding EPS estimates by $0.07 per share.
EVGO stock, unlike its peers, is showing resilience despite a tough year for EV and charging stocks. While Tesla and Ford (NYSE:F) outshine, smaller EV makers and charging stocks like ChargePoint and Blink face pressure. EVGO stands out, up by roughly 20% in 2023, while ChargePoint and Blink are down.
Furthermore, EVgo is accelerating its NACS deployment to compete with Tesla’s Supercharger expansion, solidifying its role in fast-charging networks.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.