Editor’s Note: This article was corrected to reflect the reported sales numbers of Volta Charging.
If you’ve been thinking about electric vehicle charging stocks, you’re not alone.
The electric vehicle space has been a hot one on Wall Street for a couple of years now. And now the White House is putting renewed emphasis on the sector with its recent infrastructure package.
The $1 trillion package championed by President Joe Biden includes $7.5 billion that is earmarked for a national network of 500,000 EV charging stations by 2030.
The Energy Department says there are currently fewer than 46,000 EV charging stations in the U.S. The White House is emphasizing putting EV stations in rural, disadvantaged and hard-to-reach locations.
Federal regulators are expected to provide guidance by Feb. 11 for how cities and states can deploy EV stations to be part of the network.
The landmark legislation will ensure that EV charging stocks are hot commodities over the next decade. Now the trick is finding which ones are the best ones to buy now.
Here are four to consider:
- ChargePoint Holdings (NYSE:CHPT)
- EVgo (NASDAQ:EVGO)
- Beam Global (NASDAQ:BEEM)
- Volta Charging (NYSE:VLTA)
EV Charging Stocks to Buy: ChargePoint Holdings (CHPT)
Based in Campbell, California, ChargePoint operates what is currently the largest online network of independent EV charging stations in 14 countries.
Just as importantly, ChargePoint makes the technology used to power the network. It installs, monitors and maintains the charging station as part of a subscription-based product line.
The company is relatively new to Wall Street — it began trading on the New York Stock Exchange on March 1 after completing its blank-check deal Switchback Energy Acquisition, a special purpose acquisition company. It has the distinction of being the first publicly traded EV charging network.
Cowen analyst Gabe Daould Jr recently called CHPT stock a “best idea for 2022” based on the growing EV market.
He set a price target of $37, which represents 98% upside from today’s price.
Los Angeles-based EVgo has a smaller footprint than ChargePoint, but it’s still a solid bet for growth as among EV charging stocks.
With more than 800 locations in the U.S. EVgo says more than 130 million Americans live within 10 miles of an EVgo station. EVGo says 80% of Californians live close to one of its fast-charging stations, which number more than 330 in the Golden State alone.
The consensus price target of $16.83 is more than 70% higher than the current stock price, which currently sits at less than $10. And JPMorgan analyst Bill Peterson is even more bullish, projecting that EVGO stock will reach $20.
InvestorPlace’s Louis Navellier is also a fan of EVGO stock. “Between its high share of the DC fast charger market, and the partnerships it has made within the automotive industry, it has more potential than the market’s current view of it would suggest,” he wrote last month. “In other words, if you’re looking for more under-the-radar EV plays, this is one of your best options.
EV Charging Stocks to Buy: Beam Global (BEEM)
Beem Global sells EV charging infrastructure that is powered fully by renewable energy. According to Insider Monkey, the cleantech company has contracts with the U.S. Marines Corps and NASA, and commercial contracts with AbbVie (NYSE:ABBV) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).
CEO Desmond Wheatley is already promoting the company’s products fitting well with the White House’s EV charging station network.
Key pillars in the Executive Order (14057) for a Clean Energy Economy are perfectly aligned with what we’ve been passionately building for over a decade: resilient, clean, sustainable and rapidly deployed EV charging infrastructure solutions. We’ve seen an increase in federal GSA orders and opportunities siting federal initiatives and we anticipate this latest Executive Order will further fuel Beam’s business.
BTIG Research issued a “buy” rating on BEEM stock and set a price target at $42, more than 100% upside from its current price.
Volta Charging (VLTA)
San Francisco-based Volta is an interesting play on EV charging stocks because of its business model. Yes, it sells EV charging networks, but it also sells the advertising time on the stations’ digital ad screens.
That is the lion’s share of Volta’s business. Sales in the third quarter were $8.5 million, with the company’s ad revenue accounting for $7.36 billion of that figure.
And Volta is growing fast. Year-over-year revenue was up 77% in the third quarter. And with the White House’s plans to create its huge national network of EV charging stations, VLTA stock has a huge opportunity in the next year.
Volta stock is down 48.5% from a February 2021 high, so shares are heavily discounted right now.
On the date of publication, Patrick Sanders did not have (either directly or indirectly) any other 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.
Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at @1patricksanders.