Are you planning to buy an electric vehicle (EV)? Then you may have researched Electric Charging Station Stocks. What is the first thing you look for before deciding on the EV purchase? Are there any EV charging stations near you, and how many of those are functional? While investors are going crazy over the EV potential and buying into EV makers, electric charging stocks bring a different opportunity.
Before EV sales grow, the EV charging infrastructure has to grow. Brandessence market research expects the EV charger market to grow at a compounded annual growth rate (CAGR) of 28.5% in the 2021-2028 forecasted period.
Why Invest in Electric Charging Station Stocks?
U.S. President Joe Biden has allocated funding through grants and incentives to set a national network of 500,000 EV charging stations. This has given many pure-play EV charging stations a boost. These companies are deploying charging stations and are going on the cloud.
They are developing a customer journey where customers can check the nearest EV charging station online, book slots, charge EVs and enjoy their ride. Stocks of EV makers would remain volatile, but an EV charging infrastructure can give you regular dividends in the long run.
Sunoco LP has a chain of gas stations that serves 33 states. Today, gasoline cars are everywhere, and the stock has maintained a stable dividend per share since 2017. This could be the future of EV charging stations. Here are three pure-play EV charging companies with significant upside potential:
- Blink Charging Co. (NASDAQ:BLNK)
- ChargePoint Holdings, Inc. (NYSE:CHPT)
- EVgo Inc. (NASDAQ: EVGO)
Blink Charging Stock
Blink Charging provides EV charging hardware and networked EV charging stations. Apart from this, it also earns revenue from processing payments for its property partners and from advertising. The company operates more than 23,000 EV charging stations throughout the U.S., Europe, and the Middle East.
Its global network has over 180,000 registered members. Blink platform makes its charging stations easy to access by showing usage stats, real-time status, location and charging rates.
The company is growing its infrastructure by deploying EV chargers at General Motors dealerships in the U.S and Canada. It has also partnered with facility solutions provider ABM Industries to deliver turnkey EV charging installations.
Blink increased charging stations count by 351% year over year (YoY) and revenue by 607% in the third quarter. The stock surged over 2,000% between June 2020 and February 2021, when the EV momentum surged. However, the stock market sell-off pulled Blink stock down 50%.
This is a good time to buy the stock as its long-term secular growth trend remains unchanged. The company will continue to deploy more stations. While the company has incurred losses for years, they’re focused on driving revenue growth in hopes for long term profitability. Investing in loss-making companies generally cary higher risk. However, if your risk tolerance is above average, Blink Charging is an interesting prospect in 2022.
ChargePoint Holdings
ChargePoint operates one of the largest online networks of independently owned EV charging stations. It has an asset-light software as a services (SaaS) model, offering hardware, software subscriptions, and services. It has over 26,000 public charging stations in the United States, and 118,000 globally, including Mexico, Australia and Canada.
The company is now expanding in Europe. It activated about 45,000 ports in Europe as of October 31, 2021. It also acquired European e-mobility technology provider has·to·be and eBus and commercial vehicle management provider ViriCiti.
ChargePoint is growing at a rapid pace. Its third-quarter revenue increased 79% YoY as the COVID-19 impact faded. It even increased its full-year revenue outlook to $235-240 million from $225-235 million.
Like Blink, ChargePoint stock surged over 350% during the EV momentum but fell more than 50% during the market sell-off in 2021. The stock gave a glimpse of the kind of growth EV momentum can bring in the long term. The current dip could be a great opportunity to buy the future growth stock at a discount.
EVgo
EVgo is the first 100% renewable EV charging company and has more than 800 fast-charging locations across 34 states. Its network serves over 65 metropolitan areas. It plans to triple its network in the next five years. Unlike CharfgePoint, EVgo owns these stations.
EVgo has an EV community platform PlugShare, with over two million registered users globally. The platform helps drivers find nearby EV charging stations, give feedback, and share tips. Its third-quarter revenue surged 73% YoY.
Evgo stock started trading on Nasdaq in November 2020 and surged 125% in the EV momentum. But the stock market sell-off has put the stock back to its IPO price, creating an opportunity to book your spot in the EV growth.
Best Electric Charging Station Stocks: Final Takeaway?
The EV momentum slowed in 2021 as the industry suffered from acute semiconductor supply shortages. The year 2022 could see the chip supply increase and pent-up demand fulfilled. The more EVs that hit the road, the better it is for EV charging stocks.
The above companies are currently operating at losses, as they are spending aggressively on their infrastructure build up. But the high-revenue growth could convert into profits once the infrastructure starts paying for itself and new EV stations.
Disclosure: The author holds no position in Blink Charging, Co, ChargePoint Holdings, Inc, or EVgo, Inc. Freedom Stocks has a disclosure policy.
