With more people buying electric vehicles, there’s been substantial demand for accessible EV charging stations. While we aren’t near the 500,000 EV charging stations the Biden Administration wants installed, we are seeing investments from public and private institutions. This will lead to further expansion, which will help drive EV charging stocks higher.
Helping, automakers, including BMW (OTCMKTS:BMWYY), General Motors (NYSE:GM), Honda (NYSE:HMC), Hyundai (OTCMKTS:HYMTF), Kia (OTCMKTS:KIMTF), Mercedes-Benz (OTCMKTS:MBGYY) and Stellantis (NYSE:STLA) want to create a network of 30,000 new EV charging stations across North America. Even BP (NYSE:BP) said it will invest $1 billion in EV charging across the U.S. by 2030 to meet demand for Hertz EV rentals.
That’s because they can clearly see opportunity.
If more EV charging stations are installed, people will feel far more comfortable buying an electric vehicle. Right now, according to Kelley Blue Book, about 77% of people say the lack of public charging stations is preventing them from buying an EV.
The seven automakers mentioned above can roll out even more EVs by creating a bigger network of EV charging stations. Remember, many companies want to transition from combustion engines to electric ones.
With growing, substantial demand for EV charging stations, invest in stocks like:
EVgo (EVGO)
Since bottoming out at around $1.66 in April, EVgo (NASDAQ:EVGO) is now up to $3.71 and is still a great buy. If it can break above resistance at $4.09. it could easily rally to $6.
Fueling the upside is the hope that the Federal Reserve will cut interest rates.
There’s a nearly 96% chance we’ll see a 5.25% to 5.5% cut tomorrow. For September, there’s a nearly 86% chance we’ll see a 5% to 5.25% cut. If we see either, it could be a significant catalyst for stocks like EVGO.
Helping, analysts at Benchmark just raised their price target on EVGO to $5 from $3, with a buy rating. Momentum is “driven by increased charging network utilization and a recent positive shift in market sentiment,” they added, as quoted by Barron’s.
Even better, in May, Chief Executive Officer Badar Khan bought 125,000 shares of EVGO stock for about $251,250, as it traded at $2.01. Now, up to $3.71, he’s doing well.
Beam Global (BEEM)
Beam Global (NASDAQ:BEEM) is another of the top EV charging stocks to buy.
Since bottoming out at around $4.30 in late June, BEEM rallied to a high of $7.68 before dropping to $6.07, where it’s a strong buy.
Fueling upside, the company just said it saw new second-quarter orders of $10.6 million, a 128% year-over-year improvement. Over half of those new orders were from U.S. commercial businesses. Even better, BEAM shipped its first EV ARC systems to Cyprus for the UK Ministry of Defense, which helped it expand its European footprint.
Plus, as CEO Desmond Wheatley noted, “We continue to be debt-free, have sufficient cash on hand, and have access to an untapped one-hundred-million-dollar line of credit.”
With earnings, the company recently posted an earnings per share loss of 21 cents, which still beat estimates by 4 cents. Revenue of $14.6 million was up 12.1% year over year, but it did miss estimates by $4.71 million. Both numbers should improve significantly with the charging story gaining momentum.
Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) is currently stuck in a channel between $2.30 and $3.75. But given time and further explosive EV charging momentum, it could retest $7.
While mainly focused on U.S. markets, Blink also expands throughout Europe, where EV adoption rates are higher than in the U.S. Also, while BLNK isn’t profitable just yet, its profitability picture is improving and it is expecting to see positive adjusted EBITDA this year. Once that happens, BLNK could easily accelerate to our $7 price target.
We’ll also get a better idea of what’s happening at BLNK when the company posts second-quarter earnings on Aug. 7. In its first quarter, its revenue jumped 73% to $37.6 million. Product revenue was up 68% to $27.5 million. Gross profit jumped about 195% to $13.4 million, with gross margins up 36%.
As noted by the company, “For the full year 2024, the company maintains its target of revenues between $165 million and $175 million and reiterates its target of achieving a positive adjusted EBITDA run rate by December 2024.”
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
