As the global push toward the electric vehicle continues moving on in full swing, the systems and infrastructure to support the fast-growing technology continue to enter the mainstream. EV Charging is one such realm that had exploded in significance, and companies operating within this industry have enjoyed significant growth in recent years. With so much ground yet to cover, and in matching the pace of rapid electric vehicle supply each year, the EV charging industry is poised to maintain its rocketing growth spurt. Moreover, with President Biden proactive in pushing clean road transport with the signing of an executive order in 2021, electric charging could become a common sight in the US, within the coming decades. Each of these conditions presents a tremendous opportunity for investors looking to ride the upcoming growth wave of investing in EV charging stocks.
Enthusiasts go as far as to claim that EV charging could very well replace conventional gas stations by as early as 2050. In light of this, we present the five best EV charging stocks that are a must-have in any portfolio seeking both near-term and long-term growth.
ChargePoint Holdings Inc.
The first best EV charging stock we present is ChargePoint Holdings Inc., (NYSE: CHPT) an EV charging network solutions and hardware provider. The company’s greatest strength comes in its market position, which has transformed it into a leader in the North American domain. This comes despite being publicly listed for barely two years in the financial markets. Due to the company still being in its early growth phases, it is presently fully focused on an aggressive expansion of its scope and addressable market. For this reason, it is not yet turning in a profit, however, it has slashed its loss per share from $7.77 in 2021 to just $0.64 in 2022. In its most recent quarterly release, CHPT delivered losses per share of 18 cents, which was impressive considering expectations were placed at 21 cents.
The company benefits from a robust business model that is based on profiting off of both hardware sales and software solutions, making it financially sustainable in the long-run, by catering to both core dimensions. With its cash holdings and short-term investments standing at over $470 million, ChargePoint holds sufficient resources to push through and sustain its aggressive growth in the upcoming quarters and years. Already, analysts expect its 2022 topline figure of $241 million to double to $480 million by 2023, and top $745 million in 2024. This growth opportunity is a screaming buy.
Blink Charging Co.
The second stock on our list is Blink Charging Co., (NASDAQ: BLNK) the EV charging equipment, provider. In just the last 12 months, the stock had undergone a corrective drop of 40%, which brings its valuation to attractive levels. This drop comes despite tremendous top-line growth, which saw quarterly revenue shoot up from $4.2 million to $11.3 million in June 2022, on a year-on-year basis. Fundamental improvement to this degree, accompanied by a hard plummet in the market signals a call to rush, by value chasers. During this period, gross profit also more than doubled from $1.1 million to $2.6 million.
In addition to its potential undervaluation, Blink Charging has also been making the rounds within investor discourse given its recent acquisition of SemaConnect. The deal which closed earlier this year substantially expands Blink’s capacity to cater to its addressable market. The acquisition adds 13,000 EV charging stations, as well as 3,800 host spots within the North American region. This explains the company’s aggressive growth model, which enables it to see such impressive triple-digit top-line growth. Similarly, earlier this year, Blink acquired the UK-based EB Charging company, which adds almost 1,200 EV Charging points to the company’s network. Given these strings of strategic acquisitions, Blink is positioning itself for the wave of EV charging demand that will dominate the market throughout the coming decades. Buying the best EV charging stocks now, at its extremely cheap pricing could deliver substantial long-term growth to investors.
Up next, we present one of the most promising names on this list, Rivian Automotive (NASDAQ: RIVN). Many commentators have described this EV manufacturer as being Tesla’s closest competitor, given its innovative approach to battery storage design, and the lucrative orders it has secured.
The company has also made strides in offering EV charging products that are complementary to its electric vehicle models sold. The company clearly has plans to go beyond exclusively being an electric vehicle manufacturer, but one that establishes a wider EV ecosystem that includes charge stations and related equipment and products.
At present, Rivian plans to launch over 3500 charging stations throughout the United States, in what it calls its “adventure network”. These fast DC chargers are situated across 600 sites. A company such as Rivian, whose core competitive advantage lies in its superior electric battery technology, clearly holds the expertise to transfer this knowledge to the EV charging realm. This would seriously enable the company to dominate this market too. As per its latest balance sheet reported, its cash holdings stand at almost $15 billion, allowing the company to easily follow through with these commitments, and establish itself as an EV charging kingpin. For those looking to catch in the opportunity of this early bird, the best time to invest in Rivian is now.
The fourth best EV charging stock on our list is the most promising European EV charging name, Allego NV (NYSE: ALLG). This is a company that has set its sights big and is well positioned to establish itself as a truly pan-European EV charging player, with 34,000 EV charging ports across 15 European countries.
Allego’s core strength lies in its being an EV charging company, yet operating similarly to a data company given its unique offerings. Its tech-enabled infrastructure offers fast and ultra-fast charging, and proprietary software platforms map out its locational charge network and offer forecasting services. Its charge stations collect high volumes of data, which is stored in the Allego Cloud for subsequent analysis. These factors allow for highly predictable revenue streams that bring a stable income.
Moreover, the European market remains the best for EV charging companies and will continue to improve, as EV charging shifts to becoming an essential service. Despite such a widely-spanning network, up to 80% of its customers are recurring users, which makes Allego a company with an immensely high loyalty rate. Similarly, its quarterly revenue in June 2022 shot up by almost 150% from $12.1 million to $26.6 million. This growth-oriented player is the best for those seeking to take an early stake in a future mainstream EV charging name.
The final stock on our list is Volta Inc., (NYSE: VLTA). Volta Inc. reports almost 2,300 charging stations within its network, spanning 23 US states and territories.
Volta attempts to revolutionize the EV charging game with its sleek smart charging devices that deliver it a substantial competitive edge. The large display digital screens enable optimal placement of these stations outside popular retail brands where video advertisement display is lucrative. Combining the opportunities of advertisement with that of the booming EV charge industry is a creative strategy that could deliver VLTA rocketing growth in the coming years.
EV car users, while charging their vehicles are typically unoccupied so, this creates a stellar advertisement opportunity for brands and companies. In a single month, Volta charge stations create over 900 million impressions through 4600 digital ad screens across 39 designated market spaces. As the company gradually expands its charging network, these numbers too are likely to see a boost, further strengthening Volta’s position.
This growth-oriented model has proven to be a wild success for Volta. In June 2022, its quarterly revenue more than doubled from $6.8 million to $14.8 million, on a year-on-year basis. This best EV charging stock clearly is on its way to tapping into something tremendous. Buying this key player at this stage would do wonders to one’s portfolio.
There is hardly an investment opportunity as compelling as that with EV charging companies. Given the gradual shift away from fossil fuels and the pressure of global climate action, electric vehicles entering the mainstream is all but an inevitability. This trend will continue in full swing as EV manufacturers bring down costs further. As this becomes widespread, charge stations will continue to dot the landscape, and become essential to motor transportation, as fuel stations presently are. The best EV charging stocks listed in this list presents an early entrance opportunity to investors, enabling them to see a long-term rise of epic proportions.