Over the past year, it’s been a bumpy ride for EVgo (NASDAQ:EVGO) stock. Dreams of multi-bagger profits have so far eluded the charging station manufacturer.
This result is surprising, considering EVgo’s impressive progress. At the end of 2021’s third quarter, the company had more than 310,000 customer accounts after adding around 36,000 of them.
Quarter-over-quarter revenue growth of 29% also drove the point home that EVgo was a thriving business. Still, Wall Street apparently isn’t convinced of the company’s growth narrative.
Yet, this doesn’t mean that the shareholders should just abandon ship. Perhaps EVgo’s high-potential partnerships can turn the tide of sentiment among the trading community.
A Closer Look at EVGO Stock
Buy low, sell high: it’s easy to say it, but psychologically difficult to actually carry out this plan. Do you have the emotional fortitude to buy EVGO stock after a sharp drawdown?
To help answer this question, let’s go back to the beginning. The stock debuted on July 2, 2021, opening its first trading session at $15.
After several bouts of volatility, EVGO stock rallied to $20.15 in November. It was a vertical move, so a pullback was almost inevitable.
The share price was cut in half over the ensuing months. Fast-forward to today and the stock is trading at $10 and change.
There appears to be some support at $7, as demonstrated by bounces from that level in September 2021 and January. In other words, EVGO stock may be closer to the bottom than the top, which would be good news for long-side traders.
More Stations, More Locations
While EVgo’s aforementioned customer-count increase is impressive, the company must continue growing in order to remain competitive.
It’s evident that the company is choosing to do this through strategic joint ventures. Among these is a recently expanded collaboration with Midwestern U.S. retailer Meijer, which operates 258 super-centers and grocery stores throughout multiple states.
The addition of stations at Meijer locations will add to the already considerable network of more than 800 fast-charging locations in EVgo’s network.
“Our partnership with EVgo provides another way for us to serve our community and further our commitment to sustainability,” commented Erik Petrovskis, Meijer’s director of Environmental Compliance and Sustainability.
Furthermore, EVgo will add fast-charging stations to retail locations owned by Tennessee-headquartered CBL Properties (NYSE:CBL), which holds 99 properties including malls, outlets, lifestyle retail centers and open-air centers.
As EVgo established its first CBL Properties-based charging station in Kansas, EVgo CEO Cathy Zoi said that the two companies “share a commitment to making a positive impact and we are excited to see our partnership expand to new regions.”
Sharing a Commitment
The deals with Meijer and CBL Properties are undoubtedly exciting for EVgo’s loyal stakeholders. However, there’s another collab in the works, and it might be the most significant one of all for EVgo.
The timing couldn’t be any better, as Subaru of America recently introduced the 2023 Solterra electric SUV, its first zero-emissions vehicle.
Because of this collaboration, all Subaru drivers will have access to EVgo’s mobile app for finding fast chargers, initiating and monitoring charging sessions and earning rewards points to be redeemed for free charging credits.
It’s a perfect partnership, really, as the two companies have aligned ideals pertaining to clean-Earth objectives.
“Subaru and EVgo share a commitment to performance, reliability, and being good stewards of the environment, which is why we’re excited to partner up to deliver convenient charging for Solterra drivers,” said David Sullivan, product marketing launch manager at Subaru.
The Bottom Line
In light of EVgo’s potent partnerships, it’s baffling that the company’s shares are trading at such a low price. This points to a rare buying opportunity for investors seeking to bulk up their clean-energy portfolios.
Just bear in mind that fast-charging stations still represent a fairly new technology. So, stock-price volatility will be the norm for a while.
In the long run, however, EVGO stock could run higher amid an unstoppable fast-charging station network build-out.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.