3 EV Stocks to Buy as the Electric Vehicle Market Gets Back Into Gear

Stocks to buy

The recent results of a poll on American consumers’ interest in buying electric vehicles was portrayed as bad news for the sector by many U.S. media outlets. However, I think that the data is actually quite positive for the sector. Specifically, 24% of consumers surveyed by J.D. Power said they will “very likely” consider buying EVs, and 58% reported that they were “overall likely” to consider such a purchase. So with EV prices having dropped a great deal, and multiple automakers announcing plans to launch relatively low-cost EVs, the sector’s outlook is quite bright. Against this positive backdrop, here are three EV stocks to buy.

BYD (BYDDY)

Source: shutterstock.com/Trygve Finkelsen

The sales of Chinese EV maker BYD (OTCMKTS:BYDDY) jumped 23.6% in the first four months of the year to 936,446. And, its sales of electric-only vehicles increased 17.8% during the same period to 434,579. Moreover, its growth may be accelerating, as its vehicle sales climbed 50% year-over-year in April.

In all of 2023, the automaker’s net profit soared 81% to 30 billion Chinese yuan while its top line rose 42% to 602 billion yuan.

But BYD is not resting on its laurels as it plans to sell a whopping 3.6 million vehicles this year. Moreover, it has introduced a new hybrid powertrain that will reportedly allow drivers to travel 1,250 miles without the need to charge or refuel their vehicle. I view the latter innovation as a likely, positive game changer for the automaker.

Given the company’s strong growth, high profits and impressive, new powertrain, I view BYD as one of the best EV stocks to buy.

EVgo (EVGO)

Source: Felipe Sanchez / Shutterstock.com

Correlating with my longtime bullish stance on EV charger operator EVgo (NASDAQ:EVGO), investment bank Benchmark started coverage of the shares with a “buy” rating on June 5. The bank predicts that the company’s financial performance will continue to improve this year, and it expects the firm’s EBITDA to turn positive by the end of 2024. Benchmark, which thinks the company has enough cash to last until the second half of 2025, placed a $3 price target on the name. The bank is upbeat on the company’s strategy of providing fast charging in under penetrated markets.

And in a change that should meaningfully boost EVgo’s financial results going forward, the company intends to start making its fast chargers compatible with Tesla’s charging system this year.

Finally, the company’s Autocharge+ feature allows the owners of more than 50 types pf EVs to automatically and conveniently charge their vehicles without swiping their credit cards or launching a smartphone app.

Blink Charging (BLNK)

Source: David Tonelson/Shutterstock.com

Like EVGo, Blink Charging (NASDAQ:BLNK) is an owner of EV chargers that are effectively exploiting the proliferation of EVs in the U.S.

In the first quarter, Blink’s revenue soared 72% versus the same period a year earlier to $37.57 million. Its EBITDA loss, excluding certain items, fell to $10.2 million from $17.8 million in Q1 of 2023. Blink intends to start generating positive adjusted EBITDA in December.

Interestingly, the company says that it’s well-positioned to benefit from a number of its competitors cutting back their operations. The firm can also get a lift from the ebbing of the work-from-home trend because offices will likely have to respond by adding more EV chargers.

Given the continued expansion of the EV market and Blink’s leadership position within the EV charging space, I view its market capitalization of $332 million as quite low. Further, its forward price-sales ratio of 1.5 times is also very attractive.

On the date of publication, Larry Ramer held long positions in BYDDY and EVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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