If global leaders plan to have millions of electric vehicles (EVs) on the road by 2030, they’re going to need a good deal of charging stations, too. With that, we wanted to take a quick look at some of the best EV charging stocks to buy and hold today.
Right now, just in the U.S., there are over three million electric vehicles on the roads, according to the Biden Administration. However, there are only 135,000 public charging stations currently set up to service those vehicles. Meanwhile, there are about 145,000 gas stations, according to the American Petroleum Institute. That tells us that if the U.S. is serious about selling more EVs over the next several years, the country has to get serious about setting up charging stations.
Sure, 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. That said, investors may want to jump into some of the best EV charging stocks of the day.
Best EV Charging Stocks: Blink Charging (BLNK)
Since the start of the year, Blink Charging (NASDAQ:BLNK) plummeted from about $15 to $3.70. But don’t be so quick to write it off. For one, there’s substantial demand for charging stations. And two, company earnings show progress. In its second quarter, the company reported that revenues jumped 185% year-over-year (YoY) to $32.8 million and product sales were up about 179% to $24.6 million. Service revenue was also up a stunning 211% to $7 million.
Even better, Blink 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. The company also expects full-year margins to increase by about 30% and even further expansion in 2024.
EVgo (EVGO)
Another good option is EVgo (NASDAQ:EVGO), which has been just as volatile as Blink Charging. In fact, after briefly rallying from $3.80 to $5.95, it’s right back to $3.87. While it may not appear attractive now, things should improve. For one — again — there’s plenty of demand for EV charging stations.
Two, the company is working with Amazon (NASDAQ:AMZN) to create an Alexa-enabled EV charging experience. The feature will allow EV drivers to ask Alexa for help finding nearby EV charging stations and pay for charging at EVgo stations. Three, EVGO earnings have been impressive. In its most recent quarter, the company posted an earnings per share (EPS) loss of eight cents, which beat estimates by 19 cents. It also posted revenue of $50.6 million, up 456% YoY, beating expectations by $21 million.
So, while the EVGO may not appear to be attractive, there’s a good deal of fundamental growth thanks to substantial demand.
Global X Autonomous & Electric Vehicles ETF (DRIV)
If you want to safely diversify at a lower cost, there’s always an ETF, such as the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV). Since January, the ETF ran from about $20 to a high of $27.76 and now trades at $24.80. From here, I’d like to see it trade closer to $30 a share once all of the market chaos starts to die down. With an expense ratio of 0.68%, the ETF invests in companies involved with autonomous technology, EVs, EV components and materials. Some of its top holdings include Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Toyota Motor (NYSE:TM), Qualcomm (NASDAQ:QCOM), and Tesla (NASDAQ:TSLA).
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.
