The world of electric vehicles (EVs) is accelerating at a breakneck pace. While the spotlight often shines brightest on flashy EV makers, it’s crucial not to overlook the infrastructure powering the sector. Interestingly, the top EV charging stocks have remained somewhat subdued this year, lagging behind the broader market rally. The relentless competition could be one reason, and yes, the continual cash drain could also have played its part.
Many of these stocks seem deeply oversold and are primed for a significant comeback. Recent business advancements in the sector have been nothing short of promising. Studies suggest the U.S. will require a whopping 28 million EV charging ports by 2030. Factor in the European Union’s (EU) rules demanding fast charging stations every 60km and you can sense the colossal market potential.
The sector is just getting started, and there’s ample room for multiple contenders to thrive. So, in the electrifying world of EVs, betting on charging stocks might be the spark your portfolio needs. These are my picks for the top EV charging stocks to buy today.
ChargePoint (CHPT)
ChargePoint (NYSE:CHPT) continues to grapple with a turbulent market trajectory. After a recent and significant dip, many see its stock as undervalued. At the same time, Wall Street’s wariness concerning ChargePoint’s growing losses, which grew from $93 million to a hefty $124 million in the second quarter. This concern isn’t unfounded, but it’s imperative to consider the broader picture.
Peeling back the surface reveals glimmers of hope for the business. A commendable revenue surge of 39% has somewhat damped the blow of its expanding net losses. Pivoting proactively, ChargePoint is embarking on a strategic restructuring, slashing 10% of its workforce to curtail a looming $30 million in operating expenses by the third quarter. In tandem, projected sales gleam promisingly between $150 million and $165 million, signaling an uptick of around 26% at the midpoint for the next quarter.
With its commanding presence in the U.S. market and burgeoning footprints across 16 European countries, ChargePoint is poised to harness a vast addressable market. The potential earns it a spot among the top EV charging stocks.
Wallbox (WBX)
After taking a significant hit and shedding over 50% of its value in the past year, Wallbox (NYSE:WBX) has positioned itself as a glaring undervalued gem in the EV charging sphere. While naysayers may focus on its sharp dip, a richer story is begging for attention.
A testament to its resilience, Wallbox managed to buck the trend by posting an impressive 73% revenue growth last year, predominantly driven by its burgeoning U.S. presence in the nascent DC fast-charging domain. With projections indicating a whopping 300% spike in DC fast-charging sales this year, the stock potentially offers tremendous upside ahead.
In its second quarter, Wallbox delivered an eye-popping 700% year-over-year increase with 350 Supernova DC fast chargers units. Layer this with steadily growing sales from software and services, and the narrative starts shifting. Moreover, its aggressive cost-cutting and operational efficiency improvements also hint at a brighter EBITDA margin on the horizon.
EVgo (EVGO)
Nestled within the dynamic EV charging market sits EVgo (NASDAQ:EVGO), a stock that certainly warrants attention, especially after experiencing a sharp pullback.
A dive into its financial trajectory presents a story of challenges and triumphs. On the bright side, EVgo showcased an astronomical 457% year-over-year revenue growth in the second quarter of 2023, reaching a commendable $50.6 million. Backed by a solid pipeline of charging station installations, this surge in revenue seems poised to maintain momentum.
On the flip side, however, an anticipated adjusted EBITDA loss of $74 million looms large for the year. Aggressive growth strategies could potentially pave the way for more equity dilution. Yet, there’s a silver lining: as software and services revenue escalates, coupled with enhanced operational efficiency, EVgo’s EBITDA losses could potentially see a major substantial tapering off by 2024.
Analyst perspectives further bolster the optimism around the stock. Notably, RBC‘s Chris Dendrinos recently pegged a bullish $9 price target for the stock. Corroborating this sentiment, Tipranks forecasts a hearty 44% upside.
On the date of publication, Muslim Farooque 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
