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Tap Into the Supercharged EV Industry With These 3 Stocks
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With a growth potential that seems impossible to measure, the EV market is undoubtedly one of the most fascinating and exciting stories being told over the last several years.
Simply put, the future is finally here.
And, it goes without saying that investors have a massive opportunity to reap tremendous gains from the industry’s growth trajectory over the next decade.
For investors looking to get in on the space, a few companies that are investing heavily within the EV industry include Ford Motor (F - Free Report) , General Motors (GM - Free Report) , and of course, the poster-child for the industry – Tesla (TSLA - Free Report) .
Undoubtedly a major positive, all three stocks have soared over the last three months, crushing the S&P 500’s performance and indicating that buyers have been out in full force. This is shown in the chart below.
Image Source: Zacks Investment Research
Let’s take a deeper dive into each company.
Ford Motor
Ford (F - Free Report) , an absolute titan in the automotive space, designs, manufactures, markets, and services cars, trucks, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles.
The company has aggressively pushed its EV growth – Ford is planning to spend nearly $50 billion on the segment by 2026, with a target production of over two million EVs by the end of said year.
The plan is expected to grow at a 49% CAGR (compound annual growth rate) over the span of 2023 – 2026, undoubtedly boding well for long-term growth.
Even more impressive, Ford expects EVs to account for half of its global sales by 2030, solidifying its stance in a booming industry.
In addition, another major perk is that Ford pays out a rock-solid dividend – the company’s annual dividend yields 3.9%, well above its Zacks Sector average.
F has upped its dividend payout twice over the last five years, and its payout ratio sits sustainably at 22% of earnings.
Image Source: Zacks Investment Research
General Motors
General Motors (GM - Free Report) is one of the world’s largest automakers, accounting for nearly 15% of the industry’s total sales in 2021.
Like Ford, General Motors has focused on its EV operations – GM plans to roll out a whopping total of 30 brand-new EV models by the end of 2025. A few of its vital EV launches include the GMC Hummer, Cadillac Lyriq, Equinox, Silverado, and Blazer.
Further, the company’s BrightDrop and Ultium Charge 360 ventures bode well for future growth.
BrightDrop is aimed at offering an integrated ecosystem of electric first-to-last-mile products, and its Ultium Charge 360 focuses on improving the EV charging experience.
In addition, GM shares trade at a 5.9X forward earnings multiple, well below its five-year median of 6.6X and representing a steep 74% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Tesla
Tesla (TSLA - Free Report) is the poster child for the EV industry. However, Tesla is much more than a car company, offering many products outside its vehicles and evolving into a dynamic technology innovator over the last several years.
Of course, Tesla has already fully established its EV operations, thrusting it years ahead of its competitors. The company is the market leader in battery-powered EV sales in the US, with a market share of a steep 70%.
Tesla’s EV catalog includes the Model S, Model X, Model 3, and Model Y. In addition, the company unveiled its Cybertruck in 2019, which is expected to be available in mid-2023.
It’s no secret that Tesla has found significant success - deliveries of Tesla Model 3/Y displayed a CAGR of more than 74% between 2019 and 2021.
Looking forward, Zacks expects an annualized growth rate of 45-50% in deliveries over the next three years, undoubtedly supercharged upticks.
In addition, Tesla carries stellar growth prospects – earnings are forecasted to soar nearly 80% in FY22 and an additional 30% in FY23.
Image Source: Zacks Investment Research
Further, analysts have been bullish in their earnings outlook over the last several months, helping land Tesla into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Bottom Line
The EV boom is finally here. And after years of speculation, it’s never felt more real.
It goes without saying that investors have a chance to reap unbelievable gains from the industry’s growth as we wade deeper and deeper into the waters.
The undisputed leader in the realm, Tesla (TSLA - Free Report) , has already fully established its EV operations and is seen as the crown jewel.
However, Ford Motor (F - Free Report) and General Motors (GM - Free Report) have recently dove headfirst into EVs with enormous investment plans, boding well for their future growth.
All three companies above deserve a spot on any EV stock watchlist for investors looking to tap into a supercharged industry.
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Tap Into the Supercharged EV Industry With These 3 Stocks
With a growth potential that seems impossible to measure, the EV market is undoubtedly one of the most fascinating and exciting stories being told over the last several years.
Simply put, the future is finally here.
And, it goes without saying that investors have a massive opportunity to reap tremendous gains from the industry’s growth trajectory over the next decade.
For investors looking to get in on the space, a few companies that are investing heavily within the EV industry include Ford Motor (F - Free Report) , General Motors (GM - Free Report) , and of course, the poster-child for the industry – Tesla (TSLA - Free Report) .
Undoubtedly a major positive, all three stocks have soared over the last three months, crushing the S&P 500’s performance and indicating that buyers have been out in full force. This is shown in the chart below.
Image Source: Zacks Investment Research
Let’s take a deeper dive into each company.
Ford Motor
Ford (F - Free Report) , an absolute titan in the automotive space, designs, manufactures, markets, and services cars, trucks, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles.
The company has aggressively pushed its EV growth – Ford is planning to spend nearly $50 billion on the segment by 2026, with a target production of over two million EVs by the end of said year.
The plan is expected to grow at a 49% CAGR (compound annual growth rate) over the span of 2023 – 2026, undoubtedly boding well for long-term growth.
Even more impressive, Ford expects EVs to account for half of its global sales by 2030, solidifying its stance in a booming industry.
In addition, another major perk is that Ford pays out a rock-solid dividend – the company’s annual dividend yields 3.9%, well above its Zacks Sector average.
F has upped its dividend payout twice over the last five years, and its payout ratio sits sustainably at 22% of earnings.
Image Source: Zacks Investment Research
General Motors
General Motors (GM - Free Report) is one of the world’s largest automakers, accounting for nearly 15% of the industry’s total sales in 2021.
Like Ford, General Motors has focused on its EV operations – GM plans to roll out a whopping total of 30 brand-new EV models by the end of 2025. A few of its vital EV launches include the GMC Hummer, Cadillac Lyriq, Equinox, Silverado, and Blazer.
Further, the company’s BrightDrop and Ultium Charge 360 ventures bode well for future growth.
BrightDrop is aimed at offering an integrated ecosystem of electric first-to-last-mile products, and its Ultium Charge 360 focuses on improving the EV charging experience.
In addition, GM shares trade at a 5.9X forward earnings multiple, well below its five-year median of 6.6X and representing a steep 74% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Tesla
Tesla (TSLA - Free Report) is the poster child for the EV industry. However, Tesla is much more than a car company, offering many products outside its vehicles and evolving into a dynamic technology innovator over the last several years.
Of course, Tesla has already fully established its EV operations, thrusting it years ahead of its competitors. The company is the market leader in battery-powered EV sales in the US, with a market share of a steep 70%.
Tesla’s EV catalog includes the Model S, Model X, Model 3, and Model Y. In addition, the company unveiled its Cybertruck in 2019, which is expected to be available in mid-2023.
It’s no secret that Tesla has found significant success - deliveries of Tesla Model 3/Y displayed a CAGR of more than 74% between 2019 and 2021.
Looking forward, Zacks expects an annualized growth rate of 45-50% in deliveries over the next three years, undoubtedly supercharged upticks.
In addition, Tesla carries stellar growth prospects – earnings are forecasted to soar nearly 80% in FY22 and an additional 30% in FY23.
Image Source: Zacks Investment Research
Further, analysts have been bullish in their earnings outlook over the last several months, helping land Tesla into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Bottom Line
The EV boom is finally here. And after years of speculation, it’s never felt more real.
It goes without saying that investors have a chance to reap unbelievable gains from the industry’s growth as we wade deeper and deeper into the waters.
The undisputed leader in the realm, Tesla (TSLA - Free Report) , has already fully established its EV operations and is seen as the crown jewel.
However, Ford Motor (F - Free Report) and General Motors (GM - Free Report) have recently dove headfirst into EVs with enormous investment plans, boding well for their future growth.
All three companies above deserve a spot on any EV stock watchlist for investors looking to tap into a supercharged industry.