SPECIAL REPORT The Top 7 Stocks for 2024

3 Stocks Benefitting from the Global Electric Bike Boom

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  • These three e-biking stocks will benefit from the shift in transportation preferences:
  • Uber Technologies (UBER): Uber’s acquisition of Jump has allowed the company to carve out a spot in America’s urban transit.
  • Panasonic (PCRFY): The Japanese conglomerate creates a host of consumer electronics and e-bikes and their critical components.
  • Shimano (SMNNY): For over 100 years, Shimano has been creating cycling products for urban dwellers.
e-bike stocks - 3 Stocks Benefitting from the Global Electric Bike Boom

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E-biking, or electric biking, is a form of cycling that uses a battery-powered motor to assist the rider. E-biking has risen in popularity over the past decade, particularly in urban areas, because of its convenience and affordability. Ultimately, e-biking has several benefits as part of an urban transit system: it can help people save time and money, reduce traffic congestion and air pollution, and improve their health and fitness. This has led to this list of e-bike stocks to buy.

According to a report by Markets and Markets, the global e-bike market is likely to grow at a compound annual growth rate (CAGR) of 8.4% from 2023 to 2028. Below are three stocks benefitting from this trend.

So with this industry growth in mind, here are three e-bike stocks to consider.

Uber Technologies (UBER)

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Uber (NYSE:UBER) is a leading ride-hailing and delivery platform that operates in over 60 countries. However, outside of its normal services, Uber offers e-bike rentals and aims to expand its e-bike service to more markets and integrate it with its other mobility options.

One of the advantages of Uber’s e-bike service is that it uses a dockless system, which means that users can pick up and drop off the e-bikes anywhere within a designated area. This makes the service more convenient and accessible than traditional bike-sharing systems that require users to return the bikes to specific stations. Another advantage is that Uber’s e-bikes are equipped with GPS trackers, smart locks, and electric brakes, which enhance the safety and security of the riders and the bikes.

Due to the company’s expansive reach, it is sure to benefit from the continual uptake in e-biking.

Panasonic (PCRFY)

A person is riding an electric bike representing CENN stock.
Source: moreimages / Shutterstock

Panasonic (OTCMKTS:PCRFY) is a Japanese multinational electronics company well-known for producing TVs, kitchen appliances, smart home technology, and a host of other consumer electronics. Beyond those, Panasonic also designs and creates batteries, sensors, and motors for e-bikes. Panasonic is one of the largest suppliers of e-bike components in the world.

The conglomerate has partnered with several e-bike manufacturers, such as Flyer, Hercules, and Crussis, to provide them with high-quality and reliable products. Panasonic also develops its own e-bike models, such as the GX Power series.

As e-biking increases in popularity, Panasonic will most likely benefit from both angles as a both a supplier of e-bike components and a manufacturer of its own e-bikes. Panasonic shares have risen more than 18% since the start of the year.

Shimano (SMNNY)

Electric scooters sit on a cobblestone walkway while people walk by with electric bikes
Source: Chan2545 / Shutterstock

Shimano (OTCMKTS:SMNNY) is another Japanese manufacturer focusing on bicycle components, fishing tackle, and rowing equipment. The company has been creating products for cycling for over 100 years and continues to innovate in contemporary times.

In particular, Shimano is best known for its gears, brakes, and pedals for e-bikes. Moreover, the company offers a range of e-bike systems, such as the E5000, E6100, and E7000 that cater to different types of riders and terrains.

Further investments in research and development to improve the performance of its e-bike technology could help transform Shimano into a force to be reckoned with in the cycling industry. Investors curious on e-bike stocks should definitely keep this Japanese manufacturer on their watchlists.

On the date of publication, Tyrik Torres 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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.


Article printed from InvestorPlace Media, https://investorplace.com/2023/12/3-stocks-benefitting-from-the-global-electric-bike-boom/.

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