Source: shutterstock.com/Alexander Steamaze
EV charging stocks are currently on sale, with even the biggest names in the space experiencing low prices. The opportunity is massive, given that there is nothing but bright future growth expectations for the industry. That mismatch is creating an opportunity for investors seeking a less common entry into the EV sector than manufacturer stocks.
The global EV charging market was valued at $11.9 billion in 2022 and is expected to reach $76.9 billion by 2027 according to MarketsandMarkets. That equates to 45% growth annually during that period, which can quickly multiply the value of an initial capital investment.
It’s very likely a good time to put some capital to work, let it sit, and keep the long term in mind.
Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) is an EV infrastructure stock that offers a lot at a very reasonable price. Shares currently trade for less than $6 and carry an average consensus price of $16. Strong returns are a very real possibility at present.
If those returns do materialize, it will be because of the growth narrative behind Blink Charging and not because of overall strong fundamentals. Blink Charging’s revenues increased by 121% during the first three months of 2023. The company’s service revenue growth was particularly impressive, increasing by 216% and accounting for roughly one-fourth of sales.
However, losses very nearly doubled during the same period rising from $15.1 million to $29.8 million. The company had $103.2 million in liquidity on March 31. That suggests real issues as the company continues to do business. However, few expect it to fail and current forecasts are that the company will need at least a few more years before it can provide net income to investors.
It’s certainly a riskier investment, but it’s also one of the leading EV charging names. That’ll have to do for investors seeking to make it big in the sector.
ChargePoint (NYSE:CHPT) stock offers a very similar opportunity to Blink Charging except it’s a bit more established. It is arguably the best EV charging stock, given its position and relative strength, and could realistically double an investor’s capital.
As I mentioned, ChargePoint is considerably larger than Blink and reported $130.03 million in sales during the most recent quarter. That represented 59% growth on a year-over-year basis. While the growth narrative isn’t as strong, there’s something else to note: ChargePoint’s losses are narrowing, not expanding. Those losses declined from $89 million a year ago to $79 million in Q1 ‘23.
Its liquidity position is stronger than that of Blink Charging and the company recently received a $150 million line of revolving credit through several of the world’s largest banks. It remains in a position to continue to expand as the largest pure-play EV charging stock.
Charge Enterprises (CRGE)
Charge Enterprises (NASDAQ:CRGE) is the highest risk, highest return stock in this article based on its price and forecast. It trades for less than $1 and could return 200% or more for investors.
Charge Enterprises is also different from both ChargePoint and Blink Charging in that it is not a pure-play EV charging firm. The company provides broadband infrastructure, telecommunications, and EV charging infrastructure.
Given that Charge Enterprises trades for less than $1, you might expect it to have relatively low sales. However, during Q1, the company reported $193.55 million in sales, up 19%, resulting in a $9.2 million net loss for the firm.
The company is predominantly a telecommunications firm with $166.05 million of its revenues from that business segment. However, its infrastructure business, which includes EV charging, grew by 40% during the quarter. Further, Charge Enterprises expects to become EBITDA-positive in early 2024. Its relative diversification and profitability timeline makes it a choice worth considering for EV charging enthusiasts.
On the date of publication, Alex Sirois 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.