I’ve noticed a sense of negativity surrounding battery stocks lately. The general narrative is that battery prices will decrease in time, leading to lower manufacturing profitability.

This narrative is somewhat misinterpreted. Although battery prices might taper, so will manufacturing costs. Moreover, lower battery prices will stimulate demand, lending producers the necessary latitude to achieve economies of scale. As such, lower battery prices can add productivity to the battery manufacturing industry instead of detracting from it.

With the aforementioned in mind, I screened for best-in-class battery stocks by implementing a robust screening methodology, including strict quantitative and qualitative criteria. Sure, I encountered a lot of froth, but I was able to discover numerous high-quality assets.

Here are three undervalued battery stocks to consider in April.

QuantumScape (QS)

QuantumScape (NYSE:QS) stock fell off a cliff after Tesla‘s (NASDAQ:TSLA) first-quarter deliveries report fell short of expectations. The stock declined by nearly 4% after the news broke, resulting in a cumulative year-over-year drawdown north of 25%. However, the good news is that QS stock’s decline has opened up a value gap.

For those unaware, QuantumScape has yet to achieve revenue. However, its first commercial batch of solid-state commercial batteries is set to ship this year. It’s forecasted that QuantumScape will realize $14 million in revenue for 2024 and scale up to $6.44 billion by 2028. Even though nothing is guaranteed in life, the company’s offtake pipeline is highly touted by leading auto manufacturers such as Volkswagen (OTCMKTS:VWAGY), which recently completed a successful battery test.

Placing a valuation on QS stock is subjective as it has yet to deliver tangible financial results. However, a forecasted revenue figure of $14 million could coalesce with its $2.9 billion market capitalization to produce a price-to-sales figure of around 209x. I’m aware that its initial price-to-sales ratio is high but consider its 3.63x implied growth rate.

QS stock is a steady value-added opportunity!

Plug Power (PLUG)

If you’re looking for a recovery play, you’ve got one right here, as Plug Power (NASDAQ:PLUG) stock embodies unjustified negative sentiment.

In my view, Plug Power’s focal point is its outlook. Before its fourth-quarter results, investors labeled it a going concern risk. However, matters have finally been put into perspective.

The company’s losses widened to $1.37 billion in its fourth quarter, but the interpretation of its losses is critical. Most of Plug Power’s income statement pressure stems from its “growth and expansion” reinvestment roadmap. Moreover, Plug Power incurred an accrual-based asset write-down of $325 million in its previous quarter, primarily driven by market-based factors.

Okay, Steve, an accounting loss still presents concerns; what’s your point? My point is that Plug Power’s fourth-quarter revenue grew by 27% year-over-year to $891.3 million, illustrating its secular growth. Furthermore, a pending interest rate pivot paired with improved market dynamics can alter its accrual-based results, leading to a better picture overall.

In essence, Plug Power can shift gears at any stage and phase out its margin compression.

Lastly, key metrics suggest PLUG stock is undervalued. For example, its price-to-sales ratio of 2.95x is below its cyclical average of 45.52x. Additionally, PLUG stock is trading below its 10-, 50-, 100-, and 200-day moving averages, suggesting a contrarian opportunity exists.

Enovix (ENVX)

Enovix (NASDAQ:ENVX), a lithium-ion battery manufacturer, is the final asset on today’s list. While Enovix still has much to prove, recent events suggest the company’s prospects are bright. In addition, Enovix stock’s key metrics indicate that its stock is undervalued.

Let’s discuss Enovix’s prospects in more detail.

Unlike other entry-level lithium battery manufacturers, Enovix has engaged in a rapid expansion plan. As an example, Enovix recently announced a plan to establish a $1.2 billion manufacturing plant in Malaysia, providing it with scale and diversified midstream opportunities. Furthermore, at the tail end of last year, Enovix acquired Korean battery manufacturer Routejade, phasing in secular growth prospects and potential cost-saving synergies.

In more recent news, Enovix delivered its fourth-quarter results last month, revealing solid results. Enovix’s fourth-quarter revenue settled at $7.4 million, 7.43x higher than a year ago. Moreover, Enovix’s fourth-quarter earnings surpassed estimated by 8 cents per share.

Despite possessing an elevated price-to-sales ratio of 158.15x, keep in mind that Enovix’s growth is astronomical. Additionally, ENVX stock’s price-to-book ratio of 4.93x is about 68% below its normalized average.

ENVX stock is an overvalued growth-at-a-reasonable (GARP) stock!

On the date of publication, Steve Booyens did not hold (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.