EV charging stocks surge as robust sales figures and strategic maintenance programs signal strong future profitability
Thanks to government initiatives, increasing electric vehicle (EV) adoption and significant investments in charging infrastructure, EV charging stocks will continue to rank high in most portfolios. The worldwide number of EV charging stations is expected to increase to over 40 million by 2030. So, EV charging stocks will benefit greatly from this development.
Market size is estimated to climb 25% to $125.39 billion by 2030. North American EV charging infrastructure is driven by government and business expenditures. By 2030, the U.S. market will grow 29% to $18.65 billion from $3.15 billion in 2022.
Favorable legislation to boost the EV charging market is helping EV charging stocks, notably in the U.S. The U.S. Inflation Reduction Act provides financial aid and tax benefits to green energy sources. EV purchases that meet North American final assembly and battery standards receive $7,500 tax rebates.
Moreover, the Biden-Harris Administration’s fresh policies aim to lower EV prices and boost charging stations. In addition to 500,000 chargers by 2026, $325 million will improve charger reliability and availability. Public charging stations have increased by 70% due to government schemes.
Therefore, let’s look at three buy-rated EV charging stocks with double-digit upsides and earnings beats.
ChargePoint Holdings (CHPT)
Source: Michael Vi / Shutterstock.com
ChargePoint Holdings (NYSE:CHPT) offers software-defined charging devices and a cloud subscription platform. Further, is provides one of the biggest U.S. and European private EV charging station networks. Analysts expect this premium play among EV charging stocks to increase by 54%, with an average target price of $3.19. In its latest earnings report, CHPT beat Wall Street estimates by around 14%.
Investors view 2024 as crucial for ChargePoint because of its aim for profitability this year, raising $232 million. Institutional investors provided $175 million into an at-the-market offering and $57 million in Q3 of fiscal year 2024. Additionally, ChargePoint announced a restructuring in January to enhance finances and prepare for expansion. Recent profits surpassed expectations.
Plus, ChargePoint and Kinpo Group power supply leader AcBel Polytech are developing EV charging solutions together. This collaboration expedites product delivery and lowers costs, improving ChargePoint’s R&D and maintaining high standards.
Moreover, ChargePoint created the first station with EU-mandated EV charging payment criteria. The new EU-compliant OCPI v2.2.1 Direct Payment Module securely handles 99 charges at once. Over 85,000 European charge ports employ ChargePoint’s be.ENERGISED software, including this station.
Blink Charging (BLNK)
Source: David Tonelson/Shutterstock.com
Blink Charging (NASDAQ:BLNK) reported a notable 73% year-over-year (YOY) sales increase for Q1 of 2024, hitting $37.6 million. EV charging facilities in the U.S. and Europe fueled this growth. The company promoted a 36% gross margin and operational efficiency. By December 2024, BLNK targets positive adjusted EBITDA.
Official EV charger and network services supplier BLNK is helping New York strengthen its EV charging infrastructure. Plus, Grupo Fame, one of Mexico’s largest dealership groups, has designated Blink to offer EV charging services at important locations. Blink Charging and Evri, the U.K.’s largest package delivery company, installed an EV charging station at Evri’s Rugby sorting facility. This deal helps Evri electrify its fleet.Also, Blink Charging announced its worldwide headquarters in Bowie, Maryland. Therefore, the company’s 15,000-square-foot space will meet operational demands and boost revenue.
The consensus rating for BLNK is moderate buy. With an average 12-month price objective of $6.25, the stock has 88% upside potential. The latest quarterly numbers from BLNK beat earnings estimates by 33%.
Beam Global (BEEM)
Source: shutterstock.com/Dmytro_Yushchenko
Beam Global (NASDAQ:BEEM) reported a record $10.6 million in new order numbers for Q2, up 128% over the previous year.
The initial EV ARC units for the U.K. Ministry of Defense and operations in numerous U.S. states were major exports. With the first shipments of its EV ARC systems to Europe, Beam Global made a major turning point in its worldwide expansion. This growth includes the opening of a new Beam Europe plant.
Addition, the City of Vacaville, California, has implemented Beam Global’s EV ARCTM technology to allow people to charge their EVs in public. The U.S. National Park Service has installed these systems in its offices at the Washington, D.C. National Mall.
In July, Beam Global received an order for energy storage systems made for solar-powered transport freezer units. This shows that the company has expanded into other clean technology areas.
Thus, analysts consensus is a moderate buy for BEEM. The price target is $23.50, and the stock has 295% upside potential. BEEM, like the other two EV charging stocks covered, surpassed consensus projections by 32% in its recent quarter, demonstrating its sturdy operational strategy.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Faizan Farooque 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
