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4 Charging Stocks Worth a Closer Look Amid EV Revolution
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Electric vehicles (EVs) are the future of the automotive industry. While EVs still account for a small share of global vehicle sales, they have logged impressive sales growth over the last couple of years. In 2021, sales of green cars reached 6.6 million units, accounting for roughly 9% of the global vehicle market, marking solid growth from a mere 2.5% of the global car share in 2019. While overall vehicle sales fell in the pandemic-hit 2020, battery-powered vehicles bucked the trend—with their sales soaring more than 36%. The net increase in vehicle sales in 2021 also resulted from the soaring popularity of EVs.
Zero-emission vehicles are poised to lead the transportation space in the coming years amid climate change concerns, rising bans on ICEs (internal combustion engines) and the proliferation of advanced technologies. Per S&P Global Platts Analytics, global EV sales are expected to rise to 26.8 million units by the decade end.
As EV penetration grows, so will the demand for charging stations. There are opportunities in the EV charging domain and getting your hands early on charging stocks can fetch handsome long-term rewards. In this context, it is worth adding stocks like Blink Charging (BLNK - Free Report) , ChargePoint Holdings (CHPT - Free Report) , EVgo (EVGO - Free Report) and Beam Global (BEEM - Free Report) to your watchlist.
Promising Prospects of EV Charging Space
Legacy automakers are revving up their e-mobility game and prioritizing resources to manufacture EV models over the low-margin traditional vehicles. Some auto companies have gone as far as announcing future dates in which car models will cease to carry the traditional internal-combustion engine. While EV makers are getting all charged up, countries, states, and cities are also stepping up their clean energy and e-mobility targets.
With EVs eventually set to dominate the roads, demand for extensive charging infrastructure is critical. Thankfully, the development is taking place at a rapid pace.Large-scale construction of EV charging infrastructure in China is underway. Most of the new EV charging spots are being developed in China, the world's biggest car market. China is at the forefront when it comes to the rollout of publicly accessible chargers, especially fast chargers.
Efforts in the United States also look impressive. As we know, last year, the Biden-Harris administration released an EV Charging Action Plan, outlining the steps undertaken by federal agencies to support the growth and deployment of EV chargers in the country. The government aims to build a national network of 500,000 charging stations by 2030. This February, the Biden administration rolled out a plan to allocate $5 billion to states for creating EV charging infrastructure over five years, as part of the bipartisan infrastructure package that includes $7.5 billion to establish a network of EV charging stations across the country.
Per ResearchAndMarkets.com, the global EV charging station market size is projected to grow from 2,354,000 units in 2022 to 14,623,000 units by 2027, implying a CAGR of 44.1%. Below we have highlighted four stocks, which could provide you good exposure to investing in the EV charging space.
Stocks to Keep a Tab On
Blink: One of the leading players in the EV charging space, Blink has deployed over 30,000 charging ports across 18 countries. The company is set to benefit from its strategic acquisitions, including Blue Corner and EB Charging. Subsequent to the close of the first quarter of 2022, Blink acquired UK EV infrastructure leader EB Charging for $23.4 million and added more than 1,150 chargers to its existing network. Last month, BLNK closed a $200 million cash-and-stock deal to acquire SemaConnect.This transformative deal would enable Blink to gain full control over its supply chain, making it the only EV charging firm providing 100% vertical integration.
For the first quarter of 2022, Blink generated total revenues of $9.8 million, which surpassed the Zacks Consensus Estimate by 52.72%. The top line also skyrocketed 339% on a year-over-year basis. Product sales, which constitute 82% of BLNK’s total revenues, soared 382% from the comparable year-ago quarter. Service revenues jumped 346% year over year. The Zacks Consensus Estimate for 2022 sales implies year-over-year growth of 104%. BLNK currently carries a Zacks Rank #2 (Buy).
EVgo: EVgo is the largest public fast-charging network for EVs in the United States. It is also the first charging firm to be powered by 100% renewable energy. As of Mar 31, 2022, EVGO operated more than 850 charging locations. Customer accounts increased 51% year over year to roughly 375,000 at the end of the first quarter of 2022. Last month, the company announced that it has been chosen by California Energy Commission for proposed awards of $3.6 million to establish more fast-charging infrastructure.
In the last reported quarter, EVgo recorded revenues of $7.7 million, soaring 86% year over year. Network throughput increased to 8.0 GWh in the first quarter of 2022, compared with 4.1 GWh in the first quarter of 2021, representing 95% year-over-year growth. For 2022, EVGO envisions revenues in the band of $48-$50 million. Network throughput is expected in the range of 50-60GWh. The Zacks Consensus Estimate for fiscal 2022 top and bottom lines implies year-over-year growth of 127% and 22.4%, respectively. EVgo currently carries a Zacks Rank #2.
ChargePoint: This charging company is the market leader in North America in commercial Level 2 AC chargers. It is also actively focusing on expansion into European markets. As of Apr 30, 2022, ChargePoint had more than 188,000 activated charging ports, with around 57,000 in Europe. Acquisition of has·to·be and Viriciti has accelerated CHPT’s position in the EV charging ecosystem. Strategic collaborations with Sonepar, Gatik, Wheels Donlen and others augur well.To date, ChargePoint has delivered more than 113 million charging sessions.
In the last reported quarter, ChargePoint generated total revenues of $81.6 million, which surpassed the Zacks Consensus Estimate by 8.70%. The top line also surged 102% on a year-over-year basis. For the second fiscal quarter ending Jul 31, 2022, CHPT forecasts revenues in the band of $96-$106 million, implying an 80% year-over-year increase at the midpoint of the guided range. It expects revenues of $96 million to $106 million. The Zacks Consensus Estimate for fiscal 2023 sales implies year-over-year growth of 98%. CHPT currently carries a Zacks Rank #3 (Hold).
Beam: Beam produces patented infrastructure products for the electrification of transportation. It produces products for electric vehicle charging, outdoor media and energy security. It is the only EV charging infrastructure company with a proprietary energy storage solution.The firm’s Electric Vehicle Autonomous Renewable Charger (EV ARC) is the world’s only transportable, solar-powered and permanent EV charging system. We also like the company’s unlevered balance sheet.
In the last reported quarter, Beam posted record quarterly revenues of $3.8 million, surpassing the Zacks Consensus Estimate of $3 million and rocketing 175% year over year. During the quarter, Beam also completed the All Cell Technologies buyout. The deal is set to reduce battery costs for Beam and buoy top-line growth. It also received a $2.4 million contract from SparkCharge for Beam AllCell battery products. The Zacks Consensus Estimate for 2022 top and bottom lines implies year-over-year growth of 108% and 8%, respectively. BEEM currently carries a Zacks Rank #3.
Image: Shutterstock
4 Charging Stocks Worth a Closer Look Amid EV Revolution
Electric vehicles (EVs) are the future of the automotive industry. While EVs still account for a small share of global vehicle sales, they have logged impressive sales growth over the last couple of years. In 2021, sales of green cars reached 6.6 million units, accounting for roughly 9% of the global vehicle market, marking solid growth from a mere 2.5% of the global car share in 2019. While overall vehicle sales fell in the pandemic-hit 2020, battery-powered vehicles bucked the trend—with their sales soaring more than 36%. The net increase in vehicle sales in 2021 also resulted from the soaring popularity of EVs.
Zero-emission vehicles are poised to lead the transportation space in the coming years amid climate change concerns, rising bans on ICEs (internal combustion engines) and the proliferation of advanced technologies. Per S&P Global Platts Analytics, global EV sales are expected to rise to 26.8 million units by the decade end.
As EV penetration grows, so will the demand for charging stations. There are opportunities in the EV charging domain and getting your hands early on charging stocks can fetch handsome long-term rewards. In this context, it is worth adding stocks like Blink Charging (BLNK - Free Report) , ChargePoint Holdings (CHPT - Free Report) , EVgo (EVGO - Free Report) and Beam Global (BEEM - Free Report) to your watchlist.
Promising Prospects of EV Charging Space
Legacy automakers are revving up their e-mobility game and prioritizing resources to manufacture EV models over the low-margin traditional vehicles. Some auto companies have gone as far as announcing future dates in which car models will cease to carry the traditional internal-combustion engine. While EV makers are getting all charged up, countries, states, and cities are also stepping up their clean energy and e-mobility targets.
With EVs eventually set to dominate the roads, demand for extensive charging infrastructure is critical. Thankfully, the development is taking place at a rapid pace.Large-scale construction of EV charging infrastructure in China is underway. Most of the new EV charging spots are being developed in China, the world's biggest car market. China is at the forefront when it comes to the rollout of publicly accessible chargers, especially fast chargers.
Efforts in the United States also look impressive. As we know, last year, the Biden-Harris administration released an EV Charging Action Plan, outlining the steps undertaken by federal agencies to support the growth and deployment of EV chargers in the country. The government aims to build a national network of 500,000 charging stations by 2030. This February, the Biden administration rolled out a plan to allocate $5 billion to states for creating EV charging infrastructure over five years, as part of the bipartisan infrastructure package that includes $7.5 billion to establish a network of EV charging stations across the country.
Per ResearchAndMarkets.com, the global EV charging station market size is projected to grow from 2,354,000 units in 2022 to 14,623,000 units by 2027, implying a CAGR of 44.1%. Below we have highlighted four stocks, which could provide you good exposure to investing in the EV charging space.
Stocks to Keep a Tab On
Blink: One of the leading players in the EV charging space, Blink has deployed over 30,000 charging ports across 18 countries. The company is set to benefit from its strategic acquisitions, including Blue Corner and EB Charging. Subsequent to the close of the first quarter of 2022, Blink acquired UK EV infrastructure leader EB Charging for $23.4 million and added more than 1,150 chargers to its existing network. Last month, BLNK closed a $200 million cash-and-stock deal to acquire SemaConnect.This transformative deal would enable Blink to gain full control over its supply chain, making it the only EV charging firm providing 100% vertical integration.
For the first quarter of 2022, Blink generated total revenues of $9.8 million, which surpassed the Zacks Consensus Estimate by 52.72%. The top line also skyrocketed 339% on a year-over-year basis. Product sales, which constitute 82% of BLNK’s total revenues, soared 382% from the comparable year-ago quarter. Service revenues jumped 346% year over year. The Zacks Consensus Estimate for 2022 sales implies year-over-year growth of 104%. BLNK currently carries a Zacks Rank #2 (Buy).
EVgo: EVgo is the largest public fast-charging network for EVs in the United States. It is also the first charging firm to be powered by 100% renewable energy. As of Mar 31, 2022, EVGO operated more than 850 charging locations. Customer accounts increased 51% year over year to roughly 375,000 at the end of the first quarter of 2022. Last month, the company announced that it has been chosen by California Energy Commission for proposed awards of $3.6 million to establish more fast-charging infrastructure.
In the last reported quarter, EVgo recorded revenues of $7.7 million, soaring 86% year over year. Network throughput increased to 8.0 GWh in the first quarter of 2022, compared with 4.1 GWh in the first quarter of 2021, representing 95% year-over-year growth. For 2022, EVGO envisions revenues in the band of $48-$50 million. Network throughput is expected in the range of 50-60GWh. The Zacks Consensus Estimate for fiscal 2022 top and bottom lines implies year-over-year growth of 127% and 22.4%, respectively. EVgo currently carries a Zacks Rank #2.
ChargePoint: This charging company is the market leader in North America in commercial Level 2 AC chargers. It is also actively focusing on expansion into European markets. As of Apr 30, 2022, ChargePoint had more than 188,000 activated charging ports, with around 57,000 in Europe. Acquisition of has·to·be and Viriciti has accelerated CHPT’s position in the EV charging ecosystem. Strategic collaborations with Sonepar, Gatik, Wheels Donlen and others augur well.To date, ChargePoint has delivered more than 113 million charging sessions.
In the last reported quarter, ChargePoint generated total revenues of $81.6 million, which surpassed the Zacks Consensus Estimate by 8.70%. The top line also surged 102% on a year-over-year basis. For the second fiscal quarter ending Jul 31, 2022, CHPT forecasts revenues in the band of $96-$106 million, implying an 80% year-over-year increase at the midpoint of the guided range. It expects revenues of $96 million to $106 million. The Zacks Consensus Estimate for fiscal 2023 sales implies year-over-year growth of 98%. CHPT currently carries a Zacks Rank #3 (Hold).
Beam: Beam produces patented infrastructure products for the electrification of transportation. It produces products for electric vehicle charging, outdoor media and energy security. It is the only EV charging infrastructure company with a proprietary energy storage solution.The firm’s Electric Vehicle Autonomous Renewable Charger (EV ARC) is the world’s only transportable, solar-powered and permanent EV charging system. We also like the company’s unlevered balance sheet.
In the last reported quarter, Beam posted record quarterly revenues of $3.8 million, surpassing the Zacks Consensus Estimate of $3 million and rocketing 175% year over year. During the quarter, Beam also completed the All Cell Technologies buyout. The deal is set to reduce battery costs for Beam and buoy top-line growth. It also received a $2.4 million contract from SparkCharge for Beam AllCell battery products. The Zacks Consensus Estimate for 2022 top and bottom lines implies year-over-year growth of 108% and 8%, respectively. BEEM currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.