It has been a catastrophic period for Electric Vehicle (EV) charging stocks. For one, the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) and the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) have both shed asymmetrical value in the past month, showing the systematic headwinds baked into the EV market. Furthermore, numerous macroeconomic challenges have emerged, concurrently weakening the interim demand-side outlook for EV infrastructure providers.

Many may disagree, but I think a buying opportunity has presented itself in the EV charging space. Unlike regular industrial stocks, EV stocks possess secular growth dynamics, allowing for performance throughout the economic cycle. Although occasional drawdowns might occur, EV charging stocks possess the necessary velocity to break through trying consumer environments.

Considering the above, I embarked on a screening journey to find three best-in-class EV charging stocks; here’s what I discovered.

ChargePoint Holdings (CHPT)

ChargePoint (NYSE:CHPT) is a global EV infrastructure company. Although in existence for nearly two decades, ChargePoint’s time in the limelight has yet to emerge as the EV charging industry remains in its early stages.

Event-driven activities coupled with emerging fundamental prowess led to my optimism about ChargePoint. For example, the company recently announced a software partnership with LG Electronics and a network agreement with Porsche AG (OTCMKTS:POAHY), allowing it access to noteworthy revenue streams. Furthermore, ChargePoint released its first-quarter fiscal report in June, surpassing analysts’ estimates with a revenue beat of $1.4 million and an earnings-per-share triumph of two cents.

The above mentioned factors play into ChargePoint’s broader growth story, which includes a five-year compound annual growth rate (CAGR) of 40.65%. Moreover, key metrics suggest that CHPT stock is grossly undervalued. For instance, ChargePoint has an enterprise value-to-revenue multiple of merely 1.57x and a price-to-sales ratio of only 1.38x.

In essence, headline indicators indicate that CHPT stock is under-priced and ready to rumble!

Nuvve Holding (NVVE)

Nuvve Holding (NASDAQ:NVVE) is a vehicle-to-grid technology provider. The company’s ecosystem, among other things, permits users to resell stored energy to the grid, allowing the company to tap into a valuable part of the EV charging supply chain.

This is very much a developing company. Nevertheless, Nuvve has illustrated promise. For example, the firm has 26.6 megawatts under management and recently secured a contract to manage Fresno EOC’s $16 million 50-shuttle fleet project.

Event-driven support is evident, but the question beckons: Are Nuvve’s fundamentals robust?

Nuvve recorded $780,000 in first-quarter revenue, down from $1.85 million a year earlier, suggesting that Nuvve has embedded risks. However, the company contemporaneously adjusted its cost base by decreasing its quarterly operating expenses by $800,000, illustrating its elasticity. Moreover, I reiterate that Nuvve remains an early-stage company, and, therefore, I’d focus on the broader growth story, which includes a five-year CAGR of 42.81%.

It must be highlighted that NVVE stock has shed more than 85% of its value since the turn of the year, meaning it is an exceptionally risky stock. Nonetheless, this is an opportunistic idea for those with a risk appetite, especially as NVVE has a severely compressed price-to-sales ratio of 0.15x.

EVgo (EVGO)

EVgo (NASDAQ:EVGO) is a U.S.-based fast-charging company hosting over a thousand charging units. Its integrated charging process allows customers a seamless experience, which is proven by EVgo’s rapid expansion.

According to the company’s data, more than 145 million U.S. residents live within ten miles of an EVgo outlet, providing the company with a comprehensive opportunity in the EV charging market. Furthermore, a series of events show that EVgo has achieved fundamental stature. For instance, the company released its second-quarter fiscal results at the start of the month, revealing a 2.64x increase in throughput to 66 gigawatt hours. Moreover, EVgo showed its financial momentum by reporting a quarterly revenue figure of $66.6 million, a 31.1% year-over-year increase.

EVgo’s salient risk is its bottom line. The company is running at a net loss. However, I’d focus on the firm’s growth story for now, as blitzscaling is its likely priority. Additionally, EVGO has a price-to-sales ratio of 1.84x, which I consider low for a growth stock.

In closing, EVGO stock has shed more than 20% of its value in the past year. This loss places its relative strength index at around 55. I wouldn’t say the stock is oversold, but key metrics, including EVGO’s RSI, suggest it provides a compelling entry point.

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.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.