Today, EV charging stocks are once again in focus for investors. Indeed, this sector has ebbed and flowed this year. However, right now electric vehicle charging plays look like they may be regaining momentum.
The impressive upside moves in EV charging stocks is the continuation of an uptrend in the larger sector over the past month. Right now, shares of Blink Charging (NASDAQ:BLNK), ChargePoint (NYSE:CHPT) and Volta (NYSE:VLTA) are all up between 4% and 15% at the time of this writing. However, most of these stocks still remain well off of their 52-week highs.
Perhaps that implies there’s more upside on the horizon. That is, should growth stocks continue to remain in focus as they are right now.
That said, investors have a lot to digest, given the macroeconomic data we’ve seen lately. Whether headwinds or tailwinds will ultimately take over for this sector remains to be seen. However, the trend is certainly pointing in the right direction.
Let’s dive into the key driver behind today’s rise in these EV charging stocks.
EV Charging Stocks Are Up on Infrastructure Bill Implications
It appears much of today’s rise in EV charging stocks — and the past month’s, for that matter — is related to the passing of President Joe Biden’s $1 trillion infrastructure bill.
This bill provides for significant funding via federal grants to get a massive network of charging stations built. The U.S. is aiming for 500,000 stations to be built in short order. But such an investment requires the help of the private sector to effectively meet this target as well.
The infrastructure bill was passed just this past week, paving the way for dollars to start flowing to the sector. And given the federal government is regulating growth into this space, investors have a lot to be bullish about right now.
Accordingly, it appears all EV charging stocks continue to rise on the news, as investors can’t seem to decide which company will ultimately come out ahead in the race to build out charging infrastructure. For now, investors in any one of these names appear to be well-positioned. That said, how the valuations look in the months to come may reignite discussions, considering how quickly these picks have run.
On the date of publication, Chris MacDonald 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.
