SPECIAL REPORT The Top 7 Stocks for 2024

The 3 Most Undervalued EV Charging Stocks to Buy Now: August 2023

Advertisement

  • These are three EV charging stocks you may want to buy now.
  • EVgo (EVGO): While its chart is nothing to write home about, EVgo earnings sure are.
  • Beam Global (BEEM): The company just reported quarterly revenue growth of 379% to $17.8 million.
  • ChargePoint (CHPT): Its charging network doubled over the last few years.
EV Charging Stocks - The 3 Most Undervalued EV Charging Stocks to Buy Now: August 2023

Source: Blue Planet Studio / Shutterstock

With electric vehicle demand only set to accelerate, the U.S. needs far more EV charging stations — great news for EV charging stocks. For one, the Biden Administration wants half of all new vehicle sales to be electric by 2030. Two, EV sales are expected to grow 35% year over year to 14 million, according to the International Energy Agency. However, for that to happen and to address EV adoption barriers, such as range anxiety with chargers, the U.S. must step it up.

Granted, the Biden Administration has ambitious plans of building a national network of 500,000 EV chargers across America, but they’re needed now — especially with some cities experiencing shortages. According to Automoblog, the number of EVs is far greater than the charging network in some cities.

“Combined with a dramatic increase in sales between 2021 and 2022, climbing from 700,000 to 1.0 million EV sales on Statista, we may be heading towards a charger shortage for electric cars and some plug-in hybrids in the near future,” they added.

That said, now is a good time to buy undervalued EV charging stocks.

EV Charging Stocks: EVgo (EVGO)

An image of two Evgo, Inc. (EVGO) charging stations
Source: Tada Images / Shutterstock.com

While its chart is nothing to write home about, EVgo (NASDAQ:EVGO) earnings sure are. In fact, in its second quarter, the company saw revenue growth of 457% year-over-year (YoY) to $50.6 million. While it posted an EPS loss of eight cents, that still beat expectations by 10 cents.

Even better, EVgo now expects to see revenue of between $120 million and $150 million for the full year 2023, up from $105 million to $150 million. It also now expects an adjusted EBITDA loss of between $68 million and $78 million, which is narrower than an earlier forecast range of $60 million to $78 million.

Plus, we also have to remember EVGO is working with General Motors (NYSE:GM) to expand charging access points. So far, the two have opened fast-charging stalls at about 230 locations in 27 states. And it just received a $13.8 million award from the Ohio Department of Transportation for the buildout of 20 fast-charging stations.

Beam Global (BEEM)

Closeup photo of red electric vehicle being charged with blue and black charger plugged into charging port. undervalued EV stocks.
Source: shutterstock.com/Dmytro_Yushchenko

Beam Global (NASDAQ:BEEM) isn’t your typical EV charging station company. Instead, its EV ARC, the first off-grid, rapid-deployment EV charging system, draws power from its solar panels. In fact, its Solar Tree is the “only 100% renewable off-grid fast charging solution for medium and heavy-duty electric vehicles” on the market, according to the company’s site.

And while its chart is just as ugly as EVGO, its earnings growth is solid. In its second quarter, it saw a YoY quarterly revenue growth of 379% to $17.8 million. It also saw first-half revenue growth of 312% year-over-year to $30.8 million. Even better, in Q2, BEEM saw 589% YoY growth in its EV ARC system deployments. Operating expenses improved by 44% over that period as well. Plus, the company has no debt.

Even more exciting, the City of Los Angeles Department of Recreation and Parks just placed a third order for the EV ARC to fuel the City’s growing fleet of EVs. Plus, according to the City, “The State of California expects 12.5 million EVs on California’s roads in 2035 and that 1.2 million public and shared chargers will be needed by 2030. To help achieve this goal, the California Energy Commission (CEC) approved a $2.9 billion investment plan to accelerate California’s EV charging goals.”

ChargePoint Holdings (CHPT)

EV stocks: A close-up shot of a ChargePoint charging station.
Source: YuniqueB / Shutterstock.com

Or, we can look at ChargePoint Holdings (NYSE:CHPT). Again, the chart isn’t so hot. But its future is shaping up to be, especially with analysts at Wood Makenzie noting U.S. charging ports could grow four-fold by 2027. According to the firm, we could see 18 million by then. They also note that ChargePoint is one of the dominating EV charging companies, with a 46% market share.

While the company is still not profitable, its charging network did more than double over the last few years. Plus, with further EV adoption rates expected to explode higher, CHPT could be one of the standout winners.

Also, as noted on Aug. 2, the company “expects to cut its EBITDA loss by two-thirds in the last quarter of the year. Even with that positive news, the stock dipped on a lower-than-expected Q2 guide, which Gabelli analysts say was ‘overblown.’ Plus, we have to consider CHPT has a strong foothold in the U.S. and in Europe.”

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/08/the-3-most-undervalued-ev-charging-stocks-to-buy-now-august-2023/.

©2024 InvestorPlace Media, LLC