As a complement to the fast growing electric vehicle (EV) market, the EV charging market is also experiencing substantial growth. All of which should help fuel further upside for EV charging stocks.
After all, the more demand for EVs, the more demand for EV charging stations.
As of 2022, the EV market was valued at about $50 billion. From here, it’s expected to grow at a compound annual growth rate of 15.5% until 2032, reaching a valuation of over $215 billion. Meanwhile, the global electric vehicle charging station market is expected to grow to $140 billion by 2025. In short, there is clearly a lot of opportunity in this market. All of which should create big opportunity for the seven EV charging stocks below.
EV Charging Stocks: Wallbox (WBX)
Wallbox (NYSE:WBX) is a smart electric vehicle charging and energy management provider. Investors should consider Wallbox as a promising investment opportunity, supported by robust technical and fundamental analyses. From a fundamental perspective, analysts unanimously recommend a “Strong Buy,” with price targets ranging from $4.00 to $11.00. These recommendations are based on comprehensive analyses of market trends, investor sentiment, and Wallbox’s performance indicators.
In addition, Wallbox is a stand-out in the EV charging stocks industry. The company’s revenue growth forecasts are impressive, with an estimated annual growth rate of 81.14%, surpassing both industry and market averages. We. should also note that Wallbox’s institutional investor interest underscores its potential. Notable financial entities, including LPL Financial LLC and NEIRG Wealth Management LLC, have acquired significant stakes in the company.
EVgo (NASDAQ:EVGO) is a leading electric vehicle (EV) charging network operator in the United States, specializing in the development and operation of fast-charging stations for electric vehicles.
Its second quarter showcased stellar growth, with reported revenue surging to an impressive $50.6 million – a 457% year over year increase. Even better, its projected revenue for the year was revised upwards to a range of $120 million to $150 million, accompanied by a narrower loss forecast. Collaborations with industry leaders like General Motors (NYSE:GM) and substantial funding injections, such as the $13.8 million grant from Ohio Department of Transportation underscore EVgo’s robust business strategy.
Despite a recent dip from it’s all-time high, EVGO exhibits promising growth prospects, especially with its plans for expanding EV charging stations across the U.S. Investing in EVgo at its current discounted price offers a viable opportunity to capitalize on the future of EV charging networks.
EV Charging Stocks: Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) is a prominent provider of EV charging solutions and services. At the moment, its network spans various locations, including commercial, residential, and public areas, contributing to the development of an extensive and accessible EV charging infrastructure.
While BLNK stock has experienced a significant decline of over 32% in the past year due to market volatility, the fundamentals highlight a strong growth trajectory. In the first quarter for example, the company’s posted a 339% year over year increase in revenue to $9.8 million. In addition, BLNK is also considered undervalued, presenting a favorable entry point for investors.
Additionally, the company’s strategic partnerships and agreements, such as the collaboration with AAA and the contract from the state of Utah for EV charging procurement, demonstrate its ability to capitalize on the growing demand for EV charging stations. With management raising revenue guidance and a robust financial performance, investing in Blink Charging is a strategic move to tap into the expanding EV charging market.
Allego (NYSE:ALLG) is a prominent electric vehicle charging solutions provider, dedicated to accelerating the transition to electric mobility with renewable energy. Fueling growth, Allego just reported a 35.61% year over year revenue growth, reaching $166.39 million in the past year. Better, with an extensive network comprising nearly 35,000 charging ports across 16 countries, its well positioned to benefit from the global EV surge.
From a technical perspective, Allego’s stock performance is noteworthy. Despite recent fluctuations, the company’s stock has displayed resilience, maintaining a 200-day moving average of $2.76 and a 50-day moving average of $2.24. The Relative Strength Index (RSI) stands at 32.22, indicating the stock is approaching oversold territory. Additionally, Allego’s price volatility, with a beta of 0.67, remains lower than the market average, suggesting relative stability.
Fundamental analysis further supports Allego’s potential. Analyst consensus rates ALLG as a “Strong Buy,” backed by a 253.26% average price target increase. The company’s solid revenue forecasts also reaffirm its optimistic outlook. Furthermore, Allego’s financial efficiency ratios, including a current ratio of 1.65 and quick ratio of 1.13, indicate strong liquidity. Meanwhile, an Altman Z-Score of -0.66, although cautionary, is mitigated by the firm’s positive revenue trajectory.
Enphase Energy (NASDAQ:ENPH), a prominent player in the renewable energy sector, entered the electric vehicle (EV) charging market with a range of innovative solutions. Since going public in 2012, the company has strategically positioned itself in the EV charging niche, focusing on residential customers.
Fundamentally, the company boasts impressive metrics, including a stellar revenue growth rate of 60% year-over-year. Its solid gross profit margin of 39.7% signifies efficient production and cost management, while a net income margin of 21.4% underlines strong profitability. Enphase’s return on equity (ROE) at 30.5% showcases effective utilization of shareholders’ equity, reflecting management’s efficiency in generating earnings from investments.
From a technical perspective, Enphase’s stock has demonstrated a bullish trend, with the 50-day moving average consistently above the 200-day moving average. This trend suggests sustained positive momentum. Additionally, the Relative Strength Index at 54 indicates a healthy balance between buying and selling pressures, positioning the stock for potential upward movement.
Considering these factors, Enphase Energy emerges as an appealing investment choice. Its robust revenue growth, high profitability, efficient use of equity, and positive technical signals indicate a promising future. Investors seeking exposure to the renewable energy sector should consider Enphase Energy due to its strong fundamentals and favorable market trends.
Beam Global (BEEM)
Founded in 2006, Beam Global (NASDAQ:BEEM) specializes in providing innovative, sustainable products and technologies for electric vehicle charging, and energy storage. BEEM also presents a compelling investment opportunity based on both fundamental and technical analysis.
From a fundamental perspective, the company’s substantial 380% year-over-year growth in sales indicates a robust financial performance. With a healthy backlog, representing approximately two quarters of sales, and a sales pipeline four times the size of the backlog, Beam Global demonstrates strong revenue potential.
Technically, the stock’s recent 46% decline over six months has positioned it within an oversold territory according to the relative strength index, signaling a potential undervaluation. This, combined with the stock’s current price level residing near a support zone, presents an opportune entry point. As market sentiment shifts and EV charging stocks regain favor, Beam Global’s solid financials and innovative solar-powered solutions position it for substantial growth, making it an attractive choice for investors aiming to capitalize on the industry’s long-term prospects.
ChargePoint (NYSE:CHPT) plays a crucial role in the EV ecosystem by building a comprehensive and convenient charging infrastructure, promoting the widespread adoption of electric vehicles and contributing to a sustainable future. Despite recent unfavorable market trends reflected in the chart, ChargePoint’s future looks promising. Especially considering Wood Makenzie’s forecast indicating a potential four-fold growth in U.S. charging ports by 2027, potentially reaching 18 million.
Even better, CHPT’s extensive charging network has more than doubled over recent years. Plus, with the anticipated surge in EV adoption rates, CHPT could position itself as a standout winner. In addition, the company just reported revenue of $56.1 million, a 61% year over year increase.
On the date of publication, Tomas Levani 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