Friday, February 23, 2024
Stocks To Buy

3 EV Charging Stocks to Buy on the Dip: February 2024

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Electric vehicle (EV) charging stocks haven’t been getting much love lately. But that’s to be expected with slowing EV sales growth. However, you may not want to write off some of the top EV charging stocks to buy just yet.

Sure, U.S. EV sales rocketed 40% in the last quarter of 2023. Unfortunately, that 40% growth is slower than the 49% reported in the third quarter, and the 52% growth in the last quarter of 2022, as noted by Business Insider. Not helping, Ford Motor (NYSE:Frecently postponed $12 billion in upcoming EV investments. Even General Motors (NYSE:GM) and Tesla (NASDAQ:TSLAare just now scaling back

All thanks to sky-high interest rates. After all, “High inflation and interest rates are making vehicle purchases difficult for everyday people, meaning it’s hard for EV makers to win their business,” says Fortune.com.

But don’t write EVs and EV charging station stocks to buy off just yet. Instead, you may want to buy the fear. You see, once the Federal Reserve does start to cut interest rates, we could see a strong resurgence in EV sales, and greater demand for EV charging stocks, such as:

ChargePoint (CHPT)

At less than $2 a share, ChargePoint (NYSE:CHPT) just picked up an increased price target of $4 from TD Cowen. Maintaining an outperform rating on the stock, the firm says CHPT could be a “potential long-term winner” even though 2024 could be another challenging year.

“We expect fewer fireworks with the 4Q print though top-line growth is likely muted as we model total revenue of $116MM and adj. gross margins of 20% (in line with normalized 3Q levels). On the call, look for further details on the F2025 guide, commercial spending/fleet deliveries, inventory levels/build rate, and Asian manufacturing facility,” said the firm, as quoted by CNBC.

We also have to consider that a good deal of negativity has been priced into the CHPT stock. Plus, when the Federal Reserve does start cutting interest rates again, this EV charging stock could begin to push aggressively higher.

EVgo (EVGO)

Another one of the top EV charging stocks to buy is EVgo (NASDAQ:EVGO), a recent slow-motion train wreck trading at just $2.07 a share. Again, don’t write these stocks off just yet. Should the Federal Reserve cut rates, EVGO could push higher, as well.

Plus, earnings haven’t been bad for the company. In fact, in its most recent quarter, the company posted an EBITDA loss of $14.2 million on sales of $35.1 million. That was better than expectations for a loss of $18.6 million on sales of $30 million.

Better, revenue jumped 234% year over year to $35.1 million from $10.5 million in the third quarter of 2022. All thanks to year-over-year increases in charging revenues and eXtend stall revenue.

Blink Charging (BLNK)

There’s also Blink Charging (NASDAQ:BLNK), which is currently sitting at triple-bottom support dating back to November. This is another one you shouldn’t write off as we wait for the Fed to act.

Helping, analysts at Needham say the BLNK stock could eventually double. The firm expects “Blink Charging to benefit from a multi-year disconnect in EV penetration. It was noted that EV Charger installations have lagged electric vehicle adoption to create a tailwind for equipment growth, which increases Needham’s confidence in the forecast for BLNK’s product sales,” as also noted by Seeking Alpha.

Better, in December, Blink reported a narrower quarterly EPS loss than anticipated. The company also raised its 2023 revenue guidance to $128 million to $133 million, as compared to earlier expectations for a range of $110 million to $120 million. BLNK is also targeting break-even EBITDA this year.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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