2021 has witnessed a bumpy road for EV charging stocks, a fact that has not deterred seasoned investors from recognizing the solid bull case for long-term growth in this sector. The Federal Reserve’s potential interest rate cuts, combined with the imminent release of more affordable EV models, signal a promising resurgence in the EV market. Despite temporary setbacks, a 22% surge in global passenger EV sales to 16.7 million vehicles this year points to an undeniable upward trajectory.
ChargePoint (CHPT)
Despite its recent tumultuous performance, investing in the industry giant ChargePoint (NYSE: CHPT) may seem counterintuitive. The stock experienced an alarming 82% decline last year and continues to face challenges, witnessing a further 70% drop over the past six months. However, for those willing to brave the storm, CHPT presents an intriguing opportunity.
Down 82.30% from its 52-week peak, CHPT appears undervalued, with potential for a significant rebound. Post-market-recovery, the company could see a resurgence in double-digit sales growth, with promising figures projected from Q4 2022 to Q2 2024. Tipranks assigns CHPT a ‘moderate buy’ rating, foreseeing a staggering 113% upside potential waiting to be realized.
EVgo (EVGO)
In stark contrast, EVgo (NASDAQ: EVGO) stands out with its impressive financials, showcasing robust growth. Quarter 4 witnessed a remarkable 83.11% year-over-year boost in sales, reaching $50 million and surpassing market expectations by $5.70 million. The company’s annual sales for 2023 soared to $161 million versus $54.6 million in the previous year, a phenomenal 195% surge. Remarkably, EVgo’s adjusted EBITDA loss of $14 million surpassed estimates by a notable $17 million, while its customer base swelled by 60% year-over-year to 884,000.
RBC Capital analyst Christopher Dendrinos recently upgraded EVGO to ‘outperform,’ emphasizing the company’s strategic edge in a market brimming with possibilities. With low entry barriers for smaller players amidst high interest rates, EVgo is poised for substantial top-and-bottom-line growth. Analyst predictions indicate a potential rise in earnings per share from 41 cents in fiscal 2024 to 26 cents in fiscal 2025, underscoring the company’s upward trajectory.
Blink Charging (BLNK)
The Electric Jolt: Blink Charging Surges Forward with Robust Financials
Integrated Business Model Sparks Success
Blink Charging (NASDAQ: BLNK) is revving up with financial figures that continue to astound investors, much like its counterpart EVGO. At the heart of its success lies Blink’s dynamic approach – a seamless integration of selling charging equipment and operating charging stations that taps into a myriad of revenue streams. While vending charging equipment may yield modest profits, managing charging stations propels Blink into the realm of higher margins with recurring revenues from charging services. This multifaceted strategy positions BLINK as a stalwart in the industry, consistently outperforming its peers with robust quarterly sales.
Impressive Financial Performance
In the latest financial quarter, Blink Charging reported a non-GAAP EPS of negative 28 cents, narrowly missing estimates by a mere two cents. However, the standout figure was its revenue, towering at $42.7 million, a striking 88.9% surge year-over-year, surpassing predictions by a substantial $8.65 million. Product and service revenues also witnessed a meteoric rise, ascending by 138% and 111% through the fiscal year. Furthermore, the company capped off 2023 on a high note, boasting record gross profits of $40.2 million.
On the publication date, Muslim Farooque affirmed no holdings in the securities mentioned. The sentiments expressed herein solely belong to the writer, adhering to the InvestorPlace.com Publishing Guidelines.
