Although the usual line remains the same – electric vehicles are the future – several hyped EV stock picks have suffered the curse of the market jinx. With various pressures such consumer demand erosion and a sector-wide price war clouding the burgeoning industry, electric mobility is arguably facing its first true test.
Not many places offer safety. Yes, Tesla (NASDAQ:TSLA) more than doubled in market value this year. However, TSLA is down noticeably since hitting a peak in November 2021. And while infrastructure players might seem viable considering the broader interest in the EV transition, the implosion of ChargePoint (NYSE:CHPT) demonstrates that no one can relax. Thus, EV stocks to buy represents a tricky narrative.
Still, that doesn’t necessarily mean investors should give up. For probably most analysts, the cat is out of the bag. EVs will take over the broader mobility and transportation ecosystem; it’s just a question of when. If that’s the case, it makes sense to plan out certain compelling top EV stocks.
Granted, it’s a tough mission due to the hype over this market subsegment. Still, there are intriguing jewels to be extracted. Below are the best EV stocks that you might not have considered before.
If you look around practically any metropolitan area in the U.S., Honda (NYSE:HMC) has become the brand of choice for millions of drivers. Legendary for its remarkable reliability, a decently cared for Honda can be quite an investment. No, cars generally are money pits. But if you can keep one running for several years, the convenience pays for itself.
However, Honda is hardly on the radar regarding EV stock picks. Currently, Honda focuses on hybrid and plug-in hybrid vehicles. However, the company will soon release its Prologue, a handsome SUV that runs on an all-electric platform. So, it’s definitely getting into the EV game and it would not be unreasonable to place your bet on HMC.
In making a sizable transition such as from combustion power to electric, drivers need reassurances. You don’t get as reassuring as the Honda brand. With its proven and apocryphal stories of reliability under fire, Honda could rise above the muck as one of the EV stocks to buy.
Oh yeah, it also pays a forward yield of 3.73% with an ultra-low payout ratio of 26.85%.
To address the pink elephant in the room right away, Nissan (OTCMKTS:NSANY) comes off as a basket case. Suffering corporate drama headaches, the Japanese automaker seems to symbolize a distant tertiary investment to a sector giant like Honda and especially Toyota (NYSE:TM). And to Toyota fans out there, it very much belongs on this list of EV stock picks but I’m also attempting to diversify my ideas.
Still, Nissan as an automotive brand enjoys worldwide recognition and respect. As I mentioned for Honda, that should play a significant role in the company’s ability to convert “combustion” heads. Various reports show that consumers – especially older Americans –are not fully sold on EVs. Frankly, I believe that’s a huge challenge for newcomers like the otherwise enticing Rivian Automotive (NASDAQ:RIVN).
But Nissan? Unless you’re living in the heart of Detroit’s industrial machinery, you’re well acquainted with the brand.
Also, NSANY – while trading over the counter – offers quietly robust performance. Since the January opener, it’s up nearly 25%. That makes it one of the top EV stocks to consider.
While a popular automaker thanks to its myriad brands, Stellantis (NYSE:STLA) might not be on investors’ radar for EV stock picks because of the impact of the United Auto Workers (UAW) strike. However, with the labor union ratifying historic contracts with companies including Stellantis, that headache is at least over. Now, the company can focus on its hind-end-kicking Dodge Charger EV.
May I be honest? Among the Stellantis brands, Dodge is the only one I give a you-know-what about. With its electric muscle car, Dodge is getting back to its roots. Do y’all remember that iconic Dodge commercial with General George Washington scaring off the Redcoats? That look of fiery determination from Washington as he stared down the British Empire with brazen audacity…this, my friends, is America.
Unfortunately, such a commercial can’t be broadcast today because some agricultural rights advocates will probably complain about the disruption of safe spaces for the grass. But that also means a real hunger exists for an unapologetically masculine EV.
Dodge. Clean mobility the American way. I dig it. Just for that, it’s one of the best EV stocks to buy.
On the date of publication, Josh Enomoto 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.