In a recent State of the Union address, President Joe Biden highlighted the stark differences between his administration and that of his predecessor, Donald Trump. He stressed the urgency of addressing climate change and the need for higher taxation on the billionaire class.
Biden also used this opportunity to showcase the success of his clean energy policies, which have stimulated $650 billion in private sector investments and created “tens of thousands of jobs.”
Before the State of the Union, U.S. Secretary of Transportation Pete Buttigieg shed light on the administration’s plans to further strengthen the clean energy sector. Buttigieg emphasized the importance of electric vehicle (EV) charging infrastructure, suggesting that now is a prime time to invest in EV charging stocks, especially as the focus is on promoting adoption in rural states.
He said, “The solutions in a dense urban area are very different from long stretches of road, where people are going to need to charge up, as well. That’s why our EV charging funding is set up in a way that doesn’t assume that all states are the same, but really invites states to develop their own plans. We do have some basic standards, like expecting there to be charging available every 50 miles along our key corridors, but we know that can be a particular issue in rural areas with more spread-out roadways.”
Buttigieg acknowledged the potential roles of artificial intelligence (AI) and electric vertical takeoff and landing (eVTOL) vehicles in the future of transportation, but the immediate focus is on enhancing the reach and accessibility of EV infrastructure.
With this in mind, let’s examine a few of the top EV charging stocks poised for growth in 2024.
EVgo (NASDAQ:EVGO), a former leader among EV charging stocks, has had a challenging year. However, the company recently reported positive earnings for the fourth quarter of 2023, surpassing estimates on both EPS and revenue. Despite the market’s volatility, EVGO stock has shown remarkable resilience over the past month.
Despite its penny-stock price levels, the firm has demonstrated strength in both sales and guidance. This sets a positive tone for the coming year, especially as the focus continues on the development of EV charging networks. Analyst Ian Cooper anticipates that EVGO will continue to rise as the focus on EV charging spurs growth for discounted stocks in the space.
Blink Charging (NASDAQ:BLNK), while similar to EVgo, appears even more promising in some respects. BLNK stock has been on a steady upward trajectory all week and has remained in the green for the past month. Despite its current trading price around the $3 mark, Blink is still priced higher than many other EV charging stocks.
Analyst Faisal Humayun said, “Specific to Blink, there are two reasons to be positive. First, [Blink] is on a stellar growth trajectory. For Q3 2023, revenue growth was 152% on a year-on-year basis to $43.4 million. [Blink] has also exceeded its full year revenue guidance. Considering the addressable market, I expect this growth momentum to sustain.”
If Humayun is correct, BLNK stock is poised to rise over the coming months as momentum builds for new EV charging investments. The company also seems to have overcome its cash-burning issues, further indicating that this name is a stock to watch among future clean energy winners.
Buttigieg has already expressed his belief that AI is “going to change transportation in ways we can’t always guess.” This suggests that investors should consider companies in the EV charging space that are leveraging the power of AI.
Stem (NYSE:STEM) seems to fit the bill. Despite a significant drop in share price this year, STEM stock offers investors exposure to both AI and commercial EV charging, a crucial part of its industry. This makes it a unique stock among charging plays. Moreover, a current share price of roughly $2 is hard to ignore given its growth potential.
The latest quarterly report from Stem signals a path toward profitability. Its focus on enterprise solutions also offers a buffer against the residential solar sector’s challenges. Additionally, with a valuation that is more attractive compared to other solar stock picks, STEM is an excellent addition to an under-$5 stock portfolio.
As of the date of publication, the author held no positions (either directly or indirectly) in the securities mentioned in this article. The views expressed in this article are those of the author, subject to the publishing guidelines.
Let us know what you think, please share your thoughts in the comments below.
