EVgo Stock Is All Charged Up and Ready to Go

Many electric vehicle (EV) stocks may be still having trouble getting back to full power. But that’s not the case with EV infrastructure play EVgo (NASDAQ:EVGO). Since February, EVGO stock has zoomed from $8.50 up to around $12 per share.

An EVgo charging station at the Victor Valley Mall in the City of Victorville.

Source: Felipe Sanchez / Shutterstock.com

There are many reasons why the crowd is catching on this operator of DC Fast Charging (DCFC) stations. One of these reasons has to do with the Russia-Ukraine crisis and its impact on oil prices. With fossil fuels at multi-decade highs, the move toward electric-powered vehicles could soon speed up.

Another reason for its big run-up pertains to a direct development with the company. That is, it has added another big-name partner under its belt. As you may know, the company has already entered several partnerships with major names in the automotive and ride-share industries.

Yet whatever the reason, you may be wondering whether EVGO stock is still a good buy at today’s prices. Is it?

Although there’s a good chance it calms down a bit after its more than 40% spike, it may be still early enough for those looking to make it a long-term position to hop along for the ride.

The Latest With EVGO Stock

As I mentioned above, the Russia-Ukraine crisis may be having a positive impact on this and other EV charging stocks. While it’s not yet cheaper to switch from a gas-powered to an electric vehicle, if sky-high energy prices persist, it may drive more to make the switch from internal combustion to electric battery cars, trucks and SUVs.

But alongside this possible external driver, there is a bit of company-related news that explains the big run-up with EVGO stock. That would be news of Subaru of America choosing the company as its preferred charging partner. This comes as Subaru gets ready to launch its first EV, the Solterra.

Announced on Feb. 8, this news played a big role in kicking off EVgo’s rally from the single-digits, back to double-digit prices. Admittedly, this may not sound like a game-changer for the EV charging company. After all, being the “official charging partner” for an automaker that barely cracks the top ten by U.S. market share is by itself not something that justifies a big boost.

It does, however, further indicate something very important: EVgo is not an “also-ran.” Sure, it’s not America’s largest charging company. At the same time, though, it’s already a leader in DCFC charging. This type of charging is much faster than most public stations (which are Level 3) and stands to become far more widely used when EVs gain critical mass.

Ahead of demand for its stations soaring, it’s making the right moves now. In other words, by entering partnerships that will greatly expand its network, and could help it develop a substantial customer base. A customer base of individual vehicle owners, as well as large fleet owners.

EVgo May Still Be a Good Buy for the Long-Term

It’s understandable to be hesitant to buy a stock that’s up massively in a short period of time. Following its move from $8.50 to $12 per share, EVGO stock may seem ripe for a pullback.

Shares could very well see a pullback. Especially if crude oil prices continue dropping back well below $100 per barrel. If this happens, it’ll call into question how long the current pain at the pump will last. In turn, this will again sour some of the enthusiasm for a faster-than-expected move to widespread use of EVs in the U.S.

But I wouldn’t focus too much on the short-term, if I was mulling a decision to buy it or not. In the near term, it’ll likely continue to be volatile. Generating just $19.3 million in revenue last year, and expected to generate just $53.7 million this year, EVGo is still years away from reaching its true breakout moment.

Nevertheless, as it approaches said moment, the stock could see considerable appreciation. Right now, it may appear pricey, given its estimated revenues presently don’t line up well with its current market capitalization ($2.93 billion). But a year or two from now things might change.

If the company begins reporting results in line with the lofty projections it has presented previously, hitting its past all-time high ($19.59 per share), and hitting new highs, could be within reach.

The Takeaway With EVGO Stock

Earning a “B”-rating in my Portfolio Grader, if you’re willing to buy and hold it until the efforts it’s making today start paying off, it’s not too late to buy into EVgo after its latest surge in price.

Even if you’re concerned about chasing it, that’s not an issue, either. The opportunity to buy it on weakness could arise in the months ahead.

While the crowd may be starting to catch on, it’s still early with EVGO stock, which is well ahead of having its breakout moment.

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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Article printed from InvestorPlace Media, https://investorplace.com/2022/03/evgo-stock-is-all-charged-up-and-ready-to-go/.

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