The market for electric vehicle (EV) charging infrastructure isn’t going anywhere. Investing in a company like Chargepoint (NYSE:CHPT) makes sense if you agree with this — and yet, CHPT stock has fallen from its peak price.
Is this a sign that the company is having major problems? Not necessarily, as share-price dips can happen for many reasons.
In the case of CHPT, the fiscal data actually indicates a company that’s on the right path. Not only that, but Chargepoint’s outlook for the future is bright yet still realistic.
Perhaps, then, there’s a mismatch between the share price and the company’s intrinsic value. That’s exactly what opportunistic investors look for, so let’s conduct a checkup on the current trader sentiment surrounding CHPT stock.
CHPT Stock at a Glance
Currently, CHPT stock has a wide 52-week range of $10.03 to $49.48. As of Jul. 19, the shares were trading at $23 and change.
In other words, the stock is below the midpoint of the historic range. This could be a buy signal for investors who like to purchase shares at a discount.
As recently as Jun. 29, CHPT stock was priced at $35, but we saw it hit nearly $50 back in January. That was when there was heated speculation in the markets and the meme-stock phenomenon was spreading.
But really, we shouldn’t lump CHPT in with the meme category. Whereas some meme stocks represent companies with little to no revenue growth, Chargepoint is fiscally firing on all cylinders — and there’s data to prove it.
A Seamless Experience
In case you’re wondering whether Chargepoint deserves to be on the short list of top vehicle-electrification businesses, a recent press release ought to put that concern to rest.
Not long ago, Chargepoint announced what the company calls “the most comprehensive EV charging solution portfolio available for fleets of all types and sizes.”
That’s a hefty claim, but it’s not unjustified. It’s fair to say that its portfolio provides practically everything that fleets need to electrify and optimize the fueling process. Here’s some what’s on offer with CHPT:
- Fleet Depot, Mobility and Home software solutions to keep vehicles charged and ready
- “Application programming interfaces (APIs) and global partnerships across telematics, fuel cards, fleet and asset management systems.”
- The Chargepoint Express Plus DC fast charging platform
- An 80-amp AC charging solution for North American fleets
- Design and build services as well as support for site analysis, planning, construction and more
- An extended parts warranty, including labor and spares management
Now that’s what I’d call a full range of services. Bill Loewenthal, the Product senior vice president at Chargepoint, put it this way:
“ChargePoint is making the transition to electrification a seamless experience, with a fleet portfolio that combines world-class software-defined hardware with services and support features to satisfy the operational needs of all types of fleets.”
A Strong Outlook
That’s great. But at the end of the day, CHPT stock investors should want to see hard fiscal data. So, is the company generating revenues or not?
The short answer is yes — Chargepoint has that area covered as well.
For example, the company’s first-quarter fiscal 2022 results show that Chargepoint generated $40.5 million. That represented a year-over-year (YOY) increase of 24%. But here’s where the rubber really meets the road: networked charging revenues for the first quarter totaled $26.8 million, signifying a YOY improvement of 36%.
And that’s not all. CHPT also remains in a solid fiscal position, with $610 million in cash on the balance sheet as of Apr. 30.
Lastly, the outlook is also bright. The company provided guidance to the tune of between $46 million and $51 million for its upcoming second quarter.
The Takeaway on CHPT Stock
All in all, although the CHPT stock price has pulled back, that needn’t be a cause for concern. When it comes down to it, the company’s products and services should continue to cover a wide range of industry needs and demands.
Furthermore, with such strong fiscal data and guidance, the bull thesis for Chargepoint is fully intact.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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