The EV revolution is in full swing, and its stakeholders are riding the crest of this transformative wave. These range from automakers and battery producers to software providers and lithium miners. Undervalued EV charging stocks represent a potentially lucrative long-term investment opportunity within this burgeoning ecosystem.
However, EV charging stocks have recently experienced a slump with market sentiments swayed by rising interest rates, inflation fears, and regulatory uncertainty. Inflation uncertainties have overshadowed growth stocks, a category many leading EV charging stocks typically fall into.
Yet, some astute analysts argue these stocks have been oversold and predict a promising long-term trajectory, highlighting their potential as hidden investment gems. For those looking to embrace the risk and seize the potential, you may find yourself at the vanguard of the EV market boom.
ChargePoint (CHPT)
Despite its recent plateau of around $9 per share, ChargePoint (NYSE:CHPT) is a formidable contender in the EV charging infrastructure sphere. It boasts a remarkable 65% market share coupled with a robust network effect, making it attractive over the long run. The stock is down more than 13% this year but remains primed to ride the crest of the burgeoning EV charging demand. McKinsey analysts estimate that the U.S. government’s aim to have 30 million EVs by 2030 would require a massive charging setup twentyfold larger than today.
Moreover, ChargePoint’s first quarter results unfurl a thriving narrative, with revenues soaring by 59% year-over-year to $130 million, complemented by strong gross margins. As the installed charging stations’ count multiplies, recurring revenue will continue to pump fuel margins, pointing to an enticing investment opportunity. Although the path to positive net income may be distant, a patient approach could prove to be incredibly promising. Bolstered by a consensus price target of $15.7, the stock has a potential 90% upside shimmering on the horizon.
Wallbox (WBX)
Wallbox (NYSE:WBX) plays a critical role in the EV charging domain while revolutionizing industry standards. Amid the widespread transition to EVs, the lack of charger standardization and compatibility remains a major obstacle to wider adoption. Here’s where Wallbox’s innovation shines. Enter the company’s Supernova chargers, which deftly address compatibility concerns. Moreover, these chargers are available in 33 countries and are primed to make their U.S. debut soon. The specter of interoperability has long haunted the EV charging landscape.
However, companies such as Wallbox are driving significant change. By offering flexible and interchangeable charging solutions, Wallbox is ushering in a new era of convenience for EV consumers. Growth rates for the firm have been stellar, boasting a 100% bump on a year-over-year basis. Moreover, analysts expect sales to skyrocket to over $500 million, representing a whopping 200% bump from last year’s figures.
EVgo (EVGO)
Navigating through a challenging market last year, EVgo (NASDAQ:EVGO) stock is effectively navigating a consolidation phase, and a bullish breakout seems imminent. Standing on the frontlines of the EV revolution, EVgo’s army of more than 3,100 DC fast-charging stalls is a testament to its strength.
The company’s first-quarter earnings report proved to be a show of financial prowess. EVgo delivered a solid 229% year-over-year revenue jump, commanding $25.3 million. Even with a net income loss, the firms sped past EPS estimates by a robust 175%.
Moreover, it isn’t hitting the brakes anytime soon. The firm has announced plans to intensify its deployment of NACS, a strategic power move in the face of Tesla’s (NASDAQ:TSLA) Supercharger advancements. Following declarations from top automakers supporting Tesla’s NACS standard, this development fortifies EVgo’s position as a key player in the fast-charging network realm.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines