Fast chargers are vital, as they enable the charging of the EV batteries and thereby make the EVs more convenient to use for long-distance travel. Also, advancements like linking charging stations with smart grids and renewable energy systems are increasing the effectiveness and environmental friendliness of the infrastructure of EV charging.
I believe that it will be EV charging stocks at the forefront of this technology and innovation that will have the best chance for making early investors rich and to grow one’s wealth. So here are three EV charging stocks to consider.
ChargePoint Holdings (CHPT)
ChargePoint (NYSE:CHPT) has a high growth potential in the electric vehicle charging network industry, especially in the United States and Europe.
Nevertheless, ChargePoint has seen revenue challenges lately due to the decrease in sales of electric vehicles. However, I expect that the company’s efforts to increase its network in Europe and become adjusted EBITDA profitable by the fourth quarter of 2025 might be a strong revaluation driver.
Analysts are also bullish on CHPT as one of those EV charging stocks and they also mirror management’s optimism about reaching breakeven profitability in the near future. Specifically, analysts estimate that it could post a positive EPS by FY2026 or FY2027 at the latest.
The positive EPS forecast also coincides with revenue reaching an inflection point at around the same time, as its top line is expected to exceed one billion by FY2027. Buying shares now while they are still cheap could then be a prudent option.
Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) operates over 30,000 charging ports across multiple countries.
I believe now is a perfect time for the company to capitalize on the growing trend of the demand for EV charging stations in the U.S. and Europe. Thus, as an equipment supplier and also having its own network of charging stations, the company has a rather unusual business model that allows the company to receive income from several sources.
I see several growth catalysts for BLNK on the horizon. Namely, the EV tax incentives at the point of sale, as well as the increased installation of NEVI funded chargers.
If the company can stick to these tailwinds, and achieve positive adjusted EBITDA by the end of 2024 as the guidance says, then it can be a turning point for the stock price. Analysts currently have a strong buy rating for BLNK, so the possibility is definitely there.
EVgo (EVGO)
The current presence of EVgo‘s (NASDAQ:EVGO) fast charging network of more than 2,700 stations, and the company’s servicing of more than 785,000 customer accounts speaks for itself. The company’s strategic partnerships with major automakers like Toyota Motor (NYSE: TM), and Honda Motor (NYSE: HMC) further cement its standing and provide opportunities for expanded charging deployments.
Despite the company’s revenue and margin issues, the focus on increasing the charger utilization rate and shifting more focus on its eXtend program can help EVgo move to the profitability path, as this is part of EVGO’s core operations.
One weakness with EVGO is that analysts’ estimates predict that it will reach a positive EPS much later than its peers; namely, beyond FY2028 as the best case scenario. Still, this slower growth carries a cheaper price tag for EVGO’s shares compared to other names on this list, as it trades at just 6x sales.
When all of these factors are accounted for, EVGO is one of the EV charging stocks to consider.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.