The go-green initiative is becoming the priority of every government. The electric vehicle or EV industry is attracting more demand every passing year. EV Charging companies have emerged with the expansion and with the passage of time people are looking at EV stocks.
The emergence of EV charging companies does not come as a surprise; without a proper charging network, the accelerated adoption of electric vehicles would be pretty much impossible. There is a lot being done around the EV charging infrastructure.
The EV charging space is expected to receive a significant boost. That includes a $7.5 billion grant allocated for EV charging networks in the infrastructure bill recently passed by the U.S. Senate.
That creates a stupendous opportunity for EV charging firms. Consequently, we have some exciting EV Charging stocks that could be of high growth in the long term. We have gathered five well-known EV charging stocks that can give you the best returns.
5 best EV stocks to buy
EVgo Inc. (EVGO)
EVgo Stock (EVGO) owns and operates a direct current fast-charging network for battery electric vehicles in the U.S. As of the first quarter of 2021, EVGO operated approximately 800 DCFC locations in nearly 65 metropolitan areas across 34 states. That means EVgo serves more than 250,000 private and commercial electric vehicles. That represents nearly a current market share of 40%.
The current market price of EVGO stock does not reflect positive outlooks because the industry is still in an early stage of operation. Therefore, investors are waiting for the right moment to go bananas. Well, this might be a perfect time as EVGO stock is still undervalued.
EVgo expects to build over 16,000 fast chargers by 2027. That would represent a 20-fold increase compared to what the company has installed till 2020. The company is getting closer to signing a contract with GM for 2,750 fast chargers.
The company continues expansion seeing more demand in the country. Recently, EVgo opened six new fast chargers at Lloyd King Center, Colorado. This expansion was done in collaboration with Regency Centers, Colorado Energy Office, and General Motors.
Moreover, EVgo has also introduced Fleet Charging Solutions with a new suite of services to support fleets as they electrify their vehicles. With the EVgo Optima™ software package and the EVgold™ service, the company will guarantee to make the shift to electric seamless for fleets.
All these developments put EVgo on a strong competitive edge as we head forward. EVgo already holds a vast market share and the expansion will help it grow further. This will also help EVGO stock pump in the long term. For now, Credit Suisse has given EVGO stock an outperform rating with an $11 price target. It will add more and more value with time to remain one of the best EV stocks to buy.
Blink Charging Co. (BLNK)
Blink Charging (BLNK), through its subsidiaries, owns, operates, and provides electric vehicle charging equipment and networked EV charging services in the U.S. BLNK has been expanding its network across the country following the green energy initiative by the Biden government.
Blink recently deployed its fast Level 2 charging stations across six hotel locations in Virginia, Maryland, and Washington D.C. These hotel deployments are part of the development of the Mid-Atlantic Electrification Partnership to create a regional EV ecosystem in the region. Certainly, this will add up to the business growth of the company and increase its user base in the region.
Similarly, Blink has another installation of its first publicly accessible charging station in San Antonio. The charging station is installed at the San Antonia Zoo and is part of a comprehensive EV program to advance the city’s climate action and air quality goals.
These developments are important for the company and would really help in long-term growth. That will ultimately play a vital role in attracting more investors in the future. As far as the quarterly results are concerned, Blink is still making progress with ups and downs. It happens when you are in an emerging industry focusing on growth.
To add a bit more to BLNK, the company was recently awarded a cooperative purchasing contract, in the Electric Vehicle Supply Equipment category, from Sourcewell. This contract will help Blink to make its EV chargers available to the municipal and non-profit entities that Sourcewell serves.
So when we look at EV stocks to buy, BLNK stock is one of the most promising stocks in the EV charging sector.
ChargePoint Holdings Inc. (CHPT)
ChargePoint (CHPT) is one of the earliest EV charging firms. The company provides electric vehicle charging networks and charging solutions in the United States. ChargePoint has more than 4,000 commercial and fleet customers and has delivered more than 87 million charging sessions.
We have also covered CHPT stock in the Best SPAC stocks video. If you want to get insights into the top SPACs, we’ll attach the link to the video.
ChargePoint has the largest market share and is already the largest EV charging company in North America. The company is focusing on expansion as it sees higher demand in the market in the next few years. We’ve seen how EV makers are increasing their production. Considering that, ChargePoint recently acquired an e-mobility provider, has·to·be, to uplift its presence in the European markets.
The company mainly drives revenue from the sale of hardware, software, and services. ChargePoint is known for its recurring software-as-a-service (SaaS) model that’s attached to its hardware. The growth on the both operational and financial front puts CHPT in a strong long-term position.
To increase the commercial fleets, CHPT recently acquired ViriCiti. ViriCiti is a leading provider of electrification solutions for eBus and commercial fleets.
With continuous impressive earnings outcomes, CHPT stock seems to be analysts favorite going into the future. Analyst firm Stifel has a buy rating for CHPT stock with a $29 price target. The average price target is $33, which is making it a favorable EV stock to buy. In the longer run, the stock price could rise even higher based on the current outlooks.
TPG Pace Beneficial Finance Corp. (TPGY)
TPG Pace Beneficial Finance (TPGY) is a special purpose acquisition company. Your first guess would be what makes this SPAC an EV charging stock? Well, TGP announced a SPAC business combination with EVBox, a charging management software that helps consumers track, manage, and optimize the EV charging infrastructure.
After climbing as high as $31.57 in early February, TPGY stock has dropped more than 60%. Well, that puts the stock in a great upside. The industry drives all the relevant stocks when it pumps on a whole. TPGY is that type of stock that is among the other EV charging stocks in the market.
Investing in SPACs can be a bit risky as they are pretty volatile. However, TPG Pace Beneficial being involved in the EV charging sector puts it on a less risky side.
EVBox is growing its EV structure in the U.S. In coloration with energy solutions provider Aetna Corp., EVBox will establish its charging networks in New England and the Mid-Atlantic states.Moreover, for the current year, EVBox has guided for revenue of $142.1 million. Revenue is expected to increase to $440.7 million by 2023. Further, software and services are likely to have an increasing share of total revenue as the company’s network expands.
With favorable government policies and strong growth, EVBox will make a difference in the coming time. That will certainly play a vital role in the growth of TPGY stock.
Volta Inc. (VLTA)
Volta Stock (VLTA) is known for its smart media-enabled charging stations for electric vehicles. The company owns almost 1,900 chargers across 26 states in the U.S. VLTA is among other EV Charging firms that are successfully growing its network across the country.
Volta recently collaborated with Topgolf Entertainment Group to add electric charging stations to additional venues across the country. TopGolf is a global sports and entertainment company. Volta has already installed charging stations in different places in more than 10 states.
The company has delivered 100 million electric miles to EV drivers across the country via its charging stations. That’s a major achievement as it helps the company to create a bigger brand in the country and helps in expansion.
Moreover, Volta has also partnered with Floor & Décor to make EV charging accessible to its customers at their warehouse stores across the country. That’s great for Volta as it’s increasing its customer base and expanding with a stronghold in the market.
The company ended 2020 with strong financials with $58.81 million in cash and cash equivalents. While the company has improved its negative working capital from 2019, it has made its place in the list of one of the best ev stocks to buy.
As we have already discussed throughout the video, Volta is in a great growing marketplace.
VLTA stock has been given a buy rating with an average price target of $14.12. ROTH Capital has a buy rating with a price target of $18.