If electric vehicles are the future, we desperately need more charging stations, I said in June. “As we wait for that to happen, now may be the time to buy some of the best EV charging stocks,” I added.
Shortly after saying that, some of the top EV charging stocks exploded higher.
All thanks to optimism over improving electric vehicle sales.
As noted by Cox Automotive, “Electric vehicle sales in the U.S. grew by 11.3% year over year in the second quarter, reaching a record-high volume of 330,463 units, according to new estimates from Kelley Blue Book.” Even now, with sales only expected to accelerate, we need more EV charging stations. Unfortunately, we’re still waiting for that to happen.
In California, for example, a recent state report said that more than two million chargers will be needed by 2035, adding “California cannot meet its transportation electrification goals without ensuring there is a sufficient supply of reliable charging infrastructure.”
In the meantime, buy EV charging stocks. With electric vehicle sales accelerating, and strong demand for chargers, related stocks could push even higher.
EVgo (EVGO)
When I mentioned EVgo (NASDAQ:EVGO) on June 21, I said “At $1.98, I’d buy and hold EVGO for the long haul. If and when the U.S. gets far more serious about EVs and EV charging stations, EVGO could see significant upside.”
Today, shares of EVGO are up to $4 a share, where it’s still a great long-term bet. Analysts over at Benchmark just reiterated its buy rating on the stock, with a $5 price target.
Even better, the company is seeing higher sales and narrower losses. In its most recent quarter, the company posted an EBITDA loss of $7.2 million on sales of $55.2 million. Analysts were looking for a loss of $13 million on sales of $52.4 million. The company also ended the quarter with 3,200 stalls in operation, growth of about 38% year over year.
Even after more than doubling since our June 21 mention, EVGO could accelerate higher.
Blink Charging (BLNK)
On June 21, I also said, “Another one of the top EV charging stocks to buy on weakness is Blink Charging (NASDAQ:BLNK). All we need is for the Administration to get aggressive with EV charging stations, and we could watch Blink explode significantly higher from its last traded price of $2.81.”
Now up to $3.50, it’s still a strong buy.
In addition, Blink still holds its “In Process” designation from the Federal Risk and Authorization Management Program for EV charging solutions. If Blink can achieve full accreditation from the agency, other government agencies can contract Blink for EV charging. That could potentially happen by the third quarter.
Plus, earnings have been solid. In its most recent quarter, its EPS loss of $0.13 beat by $0.07. Revenue of $37.57 million, up 73% year over year, beat by $2.96 million. It also says it’ll achieve positive adjusted EBITDA by the end of this year.
ChargePoint (CHPT)
I also mentioned ChargePoint (NYSE:CHPT) on June 21, as it traded at $1.50.
At the time, I noted that weakness was an opportunity. Now up to $2.20, CHPT is still a strong buy opportunity along with the Blink Charging and EVgo. Helping, CHPT just hired a new Chief Financial Officer, which, according to Business Insider, “suggests that the firm and CHPT stock may be starting a long overdue comeback.”
Even better, ChargePoint just announced its software will be used in LG Electronics’ EV charging hardware. It just partnered with Porsche Cars North America (PCNA), which will allow PCNA to access the ChargePoint network.
Earnings have been solid. Its EPS loss of 17 cents beat by two cents. Revenue of $107.04 million (while down 17.7% year over year) beat by $1.4 million. Unfortunately, revenue guidance came in at $108 million to $118 million, as compared to estimates of $122 million.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
