Avoid These 3 Electric Vehicle Stocks in May

The year 2020 saw unprecedented investor interest in the electric vehicle (EV) industry as governments worldwide announced or implemented initiatives to address the climate change concerns. The future of the global EV market looks promising with massive opportunities for growth in the battery, hybrid, and plug-in-hybrid EV markets. According to Globe Newswire, the global EV market is expected to grow at a 29% CAGR from 2021- 2026…

However, EV production costs are increasing because the world is currently witnessing a global semiconductor shortage. This, along with stock price overvaluation, is motivating investors to rotate drop EV stocks in favor of  relatively cheaper cyclical stocks amid the economic recovery. This activity is evidenced by the Global X Autonomous & Electric Vehicles ETF’s (DRIV) 4.1% gains over the past three months versus the SPDR S&P 500 ETF Trust’s (SPY) 12.8% returns.

So, it’s wise to stay away from fundamentally weak EV stocks ChargePoint Holdings, Inc. (CHPT – Get Rating), Hyllion Holdings Corp. (HYLN – Get Rating), and XL Fleet Corp. (XL – Get Rating).

Click here to checkout our Electric Vehicle Industry Report for 2021

ChargePoint Holdings, Inc. (CHPT – Get Rating)

CHPT develops and markets networked electric vehicle (EV) charging system infrastructure and cloud-based services. The company offers a portfolio of hardware, software, and services for commercial, fleet, and residential customers.

For its fiscal year 2021 fourth quarter, ended January 31, 2021, CHPT’s revenue was  $42.39 million compared to $43.24 million in the prior-year period. Furthermore, , its operating loss for the quarter was  $35.32 million and its net loss came in at $90.75 million. The  company’s loss per share came in at $5.29.

Analysts expect its EPS to remain negative in fiscal 2022 and fiscal 2023. The stock has lost 45.1% since hitting its $49.48 all-time high on December 24. It closed Friday’s trading session at $25.32.

CHPT’s poor prospects are apparent in its POWR Ratings. The stock has an overall F rating, which equates to Strong Sell in our proprietary rating system. It has an F grade for Value, and a D grade for Growth, Stability, and Quality. Click here to see the additional POWR ratings for CHPT (Momentum and Sentiment).

CHPT is ranked #83 of 89 stocks in the Industrial-Equipment industry.

Hyllion Holdings Corp. (HYLN – Get Rating)

HYLN designs, develops, and sells electrified powertrain solutions for the commercial transportation industry. It also provides battery management systems for hybrid and fully electric vehicle applications. Its Hypertruck ERX system are traditional diesel or natural gas fueled powertrains.

The company’s net revenues declined 91.7% year-over-year to $5.86 million for the fourth quarter ended December 31, 2020. Its loss from operations came in at…

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