Buy Alert: 3 EV Charging Stocks Nearing Super Attractive Entry Points

Stocks to buy

Automakers are spending billions to build a massive electric vehicle (EV) charging network, creating sizable EV charging stock opportunities. In fact, according to CBS News, “Automakers said the new electric vehicle charging network will nearly double the number of quick-charging plugs in the US and Canada, with the goal of swaying consumers on the fence about EV. The companies said there will be at least 30,000 plugs in urban areas and along travel corridors by 2030.”

Helping, earlier this year, the Biden administration opened access to another $2.5 billion in federal funds to create a bigger EV charging network across the U.S. We also have to consider the administration wants 67% of all new passenger cars to be electric by 2032. That, according to Poynter, would be a nearly tenfold increase in a nation where, compared to gasoline pumps, electric vehicle charging units are scarce.”

With demand accelerating, here are some top EV charging stock opportunities to consider.

EV Charging Stock Opportunities: Tritium (DCFC)

Source: Jeppe Gustafsson / Shutterstock.com

Tritium (NASDAQ:DCFC) is just starting to gain attention. In fact, with about 6,000 fast chargers in the U.S., the company holds about 30% of the U.S. market for universal EV chargers, as noted by Time. “It also has the largest U.S.-based factory capacity to build those universal chargers, which will be crucial to picking up lucrative contracts as part of a new $5 billion federal push to build out EV fast chargers,” they added.

It also just became the first company to win a National Electric Vehicle Infrastructure (NEVI) Formula Program order for Hawaii. Even better, in May, the company said it achieved record revenue of $57 million between January and April — a year-over-year growth rate of 237%. It also has an order backlog valued at about $153 million, and raised its fiscal year 2023 revenue guidance to a range of $210 million to $225 million, from $200 million.

ChargePoint (CHPT)

Source: JL IMAGES / Shutterstock.com

“Just as there is no EV revolution without lithium, there is no mass adoption of electric vehicles without robust networks of charging stations. This makes ChargePoint (NYSE:CHPT) another one of the top EV stocks to buy,” I noted on April 8. While the stock sank since then, it appears to be bottoming out and could accelerate to higher highs.

Moving forward, I do expect the company to see sizable global growth, especially with stronger EV demand, and further support for more charging stations. Also, while the CHPT stock did decline in first-quarter earnings, analysts at Gabelli Funds are defending it. For one, Q1 revenue did come in at the high end of guidance.

Two, the company also said it expects to cut its EBITDA loss by two-thirds in the last quarter of the year. Even with that positive news, the stock dipped on a lower-than-expected Q2 guide, which Gabelli analysts say was “overblown.” Plus, we have to consider CHPT has a strong foothold in the U.S. and in Europe, which could lead to stronger revenue growth.

Blink Charging (BLNK)

Source: David Tonelson/Shutterstock.com

Blink Charging (NASDAQ:BLNK) is another top EV charging stock to consider. While its chart is nothing to write home about at the moment, give it time. With EV adoption and a growing need for charging stations, BLNK should be one of the top beneficiaries. Helping, the company just signed an agreement with AAA to become a preferred supplier for affiliated providers. It also just agreed to launch a fast charger with Tesla’s charging port.

Furthermore, the company just announced a strong first quarter. Its first quarter revenues jumped 121% to $21.7 million from $9.8 million YOY. Service revenues were up 216% to $4.8 million YOY. Network fees were up 911% YOY to $1.6 million. Gross profits were up 186% YOY to $4.5 million.

Moving forward, Brendan Jones, President and CEO says, “With our visibility today, for full-year 2023, we continue to target revenues in the range of $100 million to $110 million and gross margin in excess of 30%.”

On the date of publication, Ian Cooper did not have (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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