The electrification of the auto industry is unstoppable. As the alternative energy market ramps up steadily, with climate change an increasingly pressing catalyst worldwide, electric vehicle (EV) production and infrastructure manufacturing companies are riding the sector’s tailwinds amid favorable government policies. Along with this, more people are shifting to EVs, attracted by their improving cost-efficiency, battery life, and performance…
Consequently, several EV start-ups have emerged, particularly through special-purpose acquisitions, leading to potential overcrowding in the EV space. This can make it difficult to pick the stocks that will emerge as the ultimate winners.
The EV industry has been one of the fastest-growing segments in 2020 and is expected to grow at a CAGR of 21.1% over the next six years. The skyrocketing performance of EV stocks is evidenced by KraneShares Electric Vehicle and Future Mobility ETF’s (KARS) 67% gains year-to-date versus the S&P 500’s 15.6% returns in the same period. Moreover, EV momentum is likely to continue because of President-elect Joe Biden’s ambitious plans around achieving net-zero carbon emissions by 2050.
Despite these positive factors and favorable trends, investors should be judicious in picking the best stocks. We believe it could be a good idea to add Blink Charging Co. (BLNK – Get Rating) and Beam Global (BEEM – Get Rating) to your portfolio to significantly benefit from their high growth rates. But, we think it is wise to avoid weaker players like Nikola Corp. (NKLA – Get Rating) and AYRO Inc. (AYRO – Get Rating) for now because these companies have relatively poor prospects and we believe are susceptible to pullbacks.
Stocks to Buy:
Blink Charging Co. (BLNK – Get Rating)
BLNK owns, operates, and provides EV charging equipment and networked EV charging services. It also provides Blink Network, a cloud-based system that operates, maintains, and tracks various charging stations and associated charging data, as well enable the remote monitoring and management of stations and payment processing. BLNK offers more than 23,000 EV charging stations in the United States and worldwide.
Yesterday, BLNK entered a reseller agreement with The Lion Electric Company, a leading manufacturer of zero-emission buses and trucks. Under the agreement, the company will offer BLNK’s full line of charging stations to school systems and bus fleets. Moreover, BLNK announced a seven-year agreement this month with Lehigh Valley Health Network, a healthcare network major, to own and operate charging stations across the health network’s extensive portfolio of locations, and further expand its operations to meet increasing consumer demand.
In the third quarter ended September 30, 020, BLNK’s revenue surged 18% year-over-year to $0.90 million, driven primarily by EV charging installations across states. The company’s product sales have grown 74% from the year-ago value to $0.6 million due to increased demand for the company’s commercial and residential products. BLNK deployed, sold, or acquired 668 EV charging stations across 25 states during the quarter, growing 87% year-over-year. However, the company reported a loss of $0.12 per share, compared to the year-ago loss of $0.10 per share.
The accelerating adoption of EV represents an enormous opportunity for EV infrastructure providers, and BLNK is aims to offer fast, convenient, and reliable charging options. The company is…
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