Last week, President Joe Biden delivered a State of the Union address to mostly positive reviews. For one, Biden made clear the differences between himself and former President Donald Trump, emphasizing the need for climate change action and higher taxation on the billionaire class. Biden also highlighted the success of his clean energy policies, which have led to $650 billion in private sector investments and have created “tens of thousands of jobs.” Before the State of the Union, however, U.S. Secretary of Transportation Pete Buttigieg also discussed plans for taking this clean energy focus even further.
Specifically, Buttigieg highlighted the importance of electric vehicle (EV) charging infrastructure. His statements show that now is an excellent time to bet on EV charging stocks, especially as the White House zeroes in on spurring adoption in rural states.
Buttigieg told Tech Brew:
“The solutions in a dense urban area are very different from long stretches of road, where people are going to need to charge up, as well. That’s why our EV charging funding is set up in a way that doesn’t assume that all states are the same, but really invites states to develop their own plans. We do have some basic standards, like expecting there to be charging available every 50 miles along our key corridors, but we know that can be a particular issue in rural areas with more spread-out roadways.”
Buttigieg also noted the roles that artificial intelligence (AI) and electric vertical takeoff and landing (eVTOL) vehicles stand to play in the future of transportation. But still, for now, the focus remains on spurring EV adoption by increasing the reach and accessibility of EV infrastructure.
With that in mind, here are a few of the best EV charging stocks primed for growth in 2024.
EV Charging Stocks: EVgo (EVGO)
It hasn’t been an easy year for this former leader among EV charging stocks. But that doesn’t mean that EVgo (NASDAQ:EVGO) can’t rebound. The company recently reported positive earnings for the fourth quarter of 2023, coming in above Wall Street estimates on both EPS and revenue. On top of that, EVGO stock has displayed impressive resilience over the past month, remaining in the green amid considerable volatility.
Despite its penny-stock price levels, the firm recently reported strength in both sales and guidance. All of this sets a positive tone for the coming year, especially as the White House continues to prioritize the development of EV charging networks.
InvestorPlace contributor Ian Cooper predicts that EVGO will continue to rise as the focus on EV charging spurs growth for discounted stocks in the space.
Blink Charging (BLNK)
While it may seem like a similar play to EVgo, Blink Charging (NASDAQ:BLNK) looks even more promising in some ways. BLNK stock has been rising steadily all week and has remained in the green for the past month. While shares currently trade around the $3 mark, Blink is still priced higher than many other EV charging stocks.
Even in a struggling sector, Blink has demonstrated an ability to secure wins despite negative market momentum. As InvestorPlace contributor Faisal Humayun reports:
“Specific to Blink, there are two reasons to be positive. First, [Blink] is on a stellar growth trajectory. For Q3 2023, revenue growth was 152% on a year-on-year basis to $43.4 million. [Blink] has also exceeded its full year revenue guidance. Considering the addressable market, I expect this growth momentum to sustain.”
If Humayun is correct, BLNK stock stands to rise over the coming months as momentum builds for new EV charging investments. The company also seems to have shed its cash-burning problems, further indicating that this name is a stock to watch among future clean energy winners.
EV Stocks: Stem (STEM)
Buttigieg already believes that AI is “going to change transportation in ways we can’t always guess.” That means investors may want to look for companies in the EV charging space that are leveraging the power of AI.
Stem (NYSE:STEM) appears to be a prime example of exactly that. Despite shares falling significantly this year, STEM stock offers investors exposure to both AI and commercial EV charging, an important part of its industry. This makes it a unique stock among charging plays. Plus, a current share price of roughly $2 is tough to beat given its growth potential.
InvestorPlace contributor Jeremy Flint notes:
“[Stem’s] latest quarterly report signals a path toward profitability. Its focus on enterprise solutions also offers a buffer against the residential solar sector’s challenges. Additionally, with a valuation that is more attractive compared to other solar stock picks, STEM is an excellent addition to an under-$5 stock portfolio.”
On the date of publication, Samuel O’Brient did not hold (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.
