Back to top

Image: Bigstock

EVgo Inc. (EVGO) Moves 9.2% Higher: Will This Strength Last?

Read MoreHide Full Article

EVgo Inc. (EVGO - Free Report) shares ended the last trading session 9.2% higher at $10.14. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13.5% loss over the past four weeks.

Shares of EVgo surged yesterday on increasing optimism surrounding the EV charging space. On Wednesday, President Biden announced the approval of first round of funding for the creation of a nationwide EV charging infrastructure. With this first set of approvals, $900 million will be granted to build EV chargers across 53,000 miles of highway across 35 states. This has boosted the prospects of charging stocks like EVgo.

This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +77.6%. Revenues are expected to be $13.66 million, up 121.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For EVgo Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EVGO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

EVgo Inc. is a member of the Zacks Automotive - Original Equipment industry. One other stock in the same industry, Denso Corp. (DNZOY - Free Report) , finished the last trading session 0.3% lower at $25.46. DNZOY has returned -12.4% over the past month.

Denso Corp.'s consensus EPS estimate for the upcoming report has changed -8.2% over the past month to $0.45. Compared to the company's year-ago EPS, this represents a change of +221.4%. Denso Corp. currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Denso Corp. (DNZOY) - free report >>

EVgo Inc. (EVGO) - free report >>

Published in