Legislation in both the U.S. and overseas encourages the deployment of an electric vehicle (EV) charging infrastructure. As a result, investors are gravitating toward the best EV charging stocks to buy.
We will spotlight three EV charging stocks and make the case for them being the best. The first pick will explore a stock that is active in both the U.S. and Europe. It provides investors with nice geographic diversification. At the same time, it is aiming for profitability by the end of this year, which is a key catalyst.
The second stock is great if you are looking to invest in one of the biggest charging EV networks globally. Incidentally, this company is also looking to finish in the black this year. If analyst projections materialize, a risk-taking investor can expect an over 200% upside.
The last pick distinguishes itself through partnerships with General Motors (NYSE:GM) and Amazon (NASDAQ:AMZN). Analysts are projecting a triple-digit upside for the stock.
Blink Charging (BLNK)
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Blink Charging (NASDAQ:BLNK) shares are down almost 21% this year. The fall opens up an attractive entry point for investors searching for the best EV charging stocks to buy.
Lower-than-anticipated earnings for Q4, challenges faced by the charging sector, and a slowdown in EV sales, are impacting the company.
However, by ignoring Blink, you are missing out on one of the best EV stocks in the field. Blink Charging, known for its extensive charger deployment, is actively expanding. This includes establishing a global corporate headquarters and expanding its manufacturing facility in Bowie, Maryland.
With a strong presence in Europe and the U.S., Blink Charging investors benefit from a geographically diverse model. Last year, it launched its compact EQ 200 charging tech in the U.K. and Ireland, where it already has over 2,000 chargers. The move led to a 37.8% surge in the stock price in only one week.
Financially, BLNK hopes to achieve adjusted EBITDA break-even by December by focusing on revenue growth and margin expansion. Its DC fast chargers and a shift to subscription-based revenue models are expected to contribute to the bulk of growth. With a 130% revenue jump for the full year 2023 and a record 89% for Q4, Blink Charging looks on track.
The analyst projections are pointing to an eye-watering upside of 210%.
ChargePoint Holdings (CHPT)
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ChargePoint Holdings (NYSE:CHPT) is one of the best best EV charging stocks to buy because of a single-minded focus on efficiency.
In January, ChargePoint Holdings announced a reorganization plan to strengthen its financial situation and set itself up for future expansion. Under the plan, the company will reduce its workforce by 12%, leading to a more streamlined model. In addition, the reorganization is anticipated to save almost $33 million in yearly operating expenses.
It’s all part of the company’s broader aim to achieve positive adjusted EBITDA by the end of 2024. In order to make good on this promise to investors, ChargePoint Holdings is accumulating significant dry powder.
In October 2023, CHPT successfully raised $232 million, including $175 million from institutional investors through an “at-the-market” offering. Additionally, to further increase its financial flexibility, it modified the terms of its outstanding $300 million convertible notes.
ChargePoint Holdings stated the total amount of cash on its balance sheet as of the end of Q3 FY2024 was about $397 million. Also, the business has access to a $150 million revolving credit line, which is currently undrawn.
As a result, ChargePoint Holdings, which owns one of the largest charging networks in the world, is heading toward profitability. Also, it’s benefitting from external tailwinds since President Joe Biden’s Bipartisan Infrastructure Law aims to bring hundreds of thousands of new charging stations.
The mix of external EV tailwinds, strong sales growth, and significant dry powder is reflected in analyst estimates for ChargePoint Holdings. The upside is projected at an astronomical 107%, considering a mean price target of $3.58 versus the last price of $1.73.
EVgo (EVGO)
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EVgo (NASDAQ:EVGO) trades at an attractive valuation, thanks to a 30% drop in stock price in the year thus far.
Blame external factors for this price movement. The previous four times EVgo reported numbers, it beat analyst estimates by 175%, 25%, 48%, and approximately 72%, respectively. Most recently, EVgo reported revenue of $50 million for Q4’23, an 83% increase year over year (YOY).
Total revenue estimates for 2024 range from $220 million to $270 million. Clearly, EVgo is setting itself up for greater success. One key to this pinnacle is EVgo’s collaborations with industry giants like General Motors and Amazon.
Partnerships, especially with GM and the Pilot Company, have resulted in the operations of the first NEVI-funded U.S. plant. This is a component of EVgo’s larger plan to use public-private partnerships to hasten the fast charger network’s statewide deployment. Significant expansion is planned for the end of 2025.
Meanwhile, EVgo’s collaboration with Amazon will incorporate Alexa to help drivers locate local charging stations.
On its own as well, EVgo is expanding at a rapid pace. It ended last year with a total of 2,990 operational stalls, tripling from 930 new stalls the year before. With an average price target of $5.25, analysts are projecting a 127% upside from the last recorded price of $2.31.
On the publication date, Faizan Farooque did not have (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.
