Countries across the globe are striving to have millions of electric vehicles on the road by the end of this decade. To achieve this goal, governments have laid out several initiatives and incentives. Although gaining popularity, increasing the adoption of EVs requires an increase of charging stations.
Therefore, EV charging companies are going to see high demand in the next few years. Charging infrastructure will become the key to enable EV adoption. With that in mind, let’s take a look at the three most undervalued EV charging stocks to buy now.
Tesla (TSLA)
One of the largest EV makers in the world, Tesla (NASDAQ:TSLA) brings several advantages for investors. An established industry player, Tesla recently opened up its charging network to other EV makers, steadily increasing its charging network.
Thus, it could continue partnership expansion in upcoming quarters, possibly inviting a significant contribution to Tesla’s revenue over the next five years.
Notably, TSLA stock has more than doubled this year, with the best balance sheet in the EV industry. Trading at $248 today, the stock is up 129% year to date (YTD) and over 42% in the past six months. The company managed to deliver 889,015 cars in the first half of the year.
Besides the impressive delivery numbers, the company also reported strong fundamentals and is firing on all cylinders. In Q2, the company saw a 33% rise in superchargers and stations. It has solid expansion plans into India and is already working on Robo taxis. Having converted its cost-bearing EV charging network to a revenue-generating source, Tesla is one of the best EV charging stocks to own right now.
EVgo (EVGO)
A penny stock, EVgo (NASDAQ:EVGO) reported impressive second quarter earnings, with a revenue of $50.6 million, a 457% year-over-year (YOY) growth and an EPS loss of 8 cents. EVgo expects revenue between $120 million to $150 million for the year, up from $105 million to $150 million. It also anticipates a narrower loss from the earlier forecast, a bright sign for the company.
Currently working with General Motors (NYSE:GM) in the expansion of charging access points, it’s already opened fast charging stalls across 27 states. The company has been making solid deals lately and was chosen by Ohio Transportation to receive $13.8 million for 20 new fast-charging stations.
In addition, EVGO stock is trading at $3.62 today and is down 37% in the past six months. EVgo has a solid business plan which positions it for continued expansion in the charging network space.
The quarterly results were a significant improvement from the previous quarter, with cash flow improvements. Currently, it is negative $3.2 million, although it could turn positive before year’s end. Own this stock while it’s trading at a discount.
Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) is another undervalued EV charging stock that should be a part of your portfolio. While BLNK stock has gone from $22 to $3.57, you shouldn’t write it off just yet.
Consider this as a chance to load up on the stock. The demand for charging stations will continue to be on the rise, and the company has proved its ability with its financials.
It reported a revenue of $32.8 million, a 185% YOY jump. Trading at $3.57 today, the penny stock is highly undervalued. The stock is trading much lower than the 52-week high of $24 which shows ample upside potential from the current level.
Also, the management is raising its guidance to $110 million to $120 million from the previous range of $100 million to $110 million. It has signed an agreement with AAA to provide EV products to the affiliated service providers across different locations. This is an opportunity for the company to increase its footprint. Further, it’s been awarded a contract by Utah for EV charging procurement.
On the date of publication, Vandita Jadeja 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.
