In a recent State of the Union address, President Joe Biden highlighted the differences between his administration and that of his predecessor, Donald Trump. He stressed the importance of tackling climate change and the need for increased taxes on the billionaire class. Biden also used this platform to showcase the success of his clean energy policies, which have led to $650 billion in private sector investments and created numerous jobs.
Before the State of the Union, U.S. Secretary of Transportation Pete Buttigieg shared his views on the future of clean energy. He specifically focused on the importance of electric vehicle (EV) charging infrastructure. His comments suggest that now is a good time to invest in EV charging stocks, especially as the government is eager to promote adoption in rural states.
Buttigieg explained, “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.”
He also discussed the potential roles of artificial intelligence (AI) and electric vertical takeoff and landing (eVTOL) vehicles in the future of transportation. However, the current focus remains on boosting EV adoption through the expansion and accessibility of EV infrastructure.
With this in mind, let’s examine a few EV charging stocks that are set for growth in 2024.
EVgo (NASDAQ:EVGO), once a 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 market volatility, EVGO stock has shown remarkable resilience over the past month.
Despite its low price levels, the company recently reported strength in both sales and guidance. This sets a positive tone for the coming year, especially as the government continues to prioritize the development of EV charging networks. Analysts predict 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 steadily rising all week and has remained in the green for the past month. Despite trading around the $3 mark, Blink is still priced higher than many other EV charging stocks.
Even in a struggling sector, Blink has demonstrated an ability to secure wins despite negative market momentum. As reported:
“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, this growth momentum is expected to sustain.”
If these predictions hold true, BLNK stock is set to rise in 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 is a stock to watch among future clean energy winners.
Buttigieg has 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 harnessing the power of AI.
Stem (NYSE:STEM) seems to fit this bill. Despite a significant drop in share price this year, STEM stock offers investors exposure to both AI and commercial EV charging, a crucial aspect of its industry. This makes it a unique stock among charging plays. Furthermore, a current share price of roughly $2 is hard to beat given its growth potential.
“[Stem’s] latest quarterly report 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, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the publishing guidelines.
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