With the increase in the demand for Electric Vehicles (EVs), the stock prices of EV charging industries have skyrocketed.
And it only seems natural for people to be more willing to invest in such stocks. But, considering that they’re running ahead of the market fundamentals and are pretty volatile currently, experts suggest that people slow down a bit.
You should ideally wait for corrections in the market before jumping into investing. Conduct overall research on the charging company stocks that have a chance of growing to the right prices in the future.
To help ease your task a bit, today, here we have shared the details about four stocks that can make for good investment opportunities in the coming years.
Blink Charging (NASDAQ: BLNK)
First up, we have electric services company Blink Charging. BLNK stocks had risen to an all-time high of $64.50, but recently, they came close to their correct value of $30. Chances are that BLNK stocks price might come down a bit more, so it would be better to analyze them for some time and then think about investing.
But in FY2020, the company had reported a revenue of $6.2 million, and currently, it has an aggregate market value of $1.37 billion. So if you look from the growth perspective, the company has a bright future. Plus, it’s also working on expanding. Recently, it acquired Blue Corner – a Belgium-based EV charging company with a portfolio of 7,071 charging ports.
ChargePoint Holdings (NYSE: CHPT)
Based in Campbell, California, CHPT has one of the most tempting EV charging stocks. The company forecasted $198 million as revenue in FY2022, and currently, it reported a market capitalization of $6.3 billion.
Its stock has even corrected from a record-breaking $49.48 to $21.30. But investors should watch out for their revenue in FY2020 and FY2021 which stands at $144.5 million and $146.5 million. Looking at the difference in figures, they should think about whether the CHPT can achieve their target for FY2022 or not. So a better thing would be to keep an eye on one or two-quarters of CHPT before investing in them.
Climate Change Crisis Real Impact I (NYSE: CLII)
Most EV charging companies enter the listing through special purpose acquisition companies (SPAC). In Jan 2021, EVgo Services had declared a SPAC union with Climate Change Crisis Real Impact I Acquisition.
Post the deal, EVgo stood at a $2.6 billion valuation. But the company’s current year revenue figures revealed a different story as they stood at $20 million. That meant its valuation was 130 times more than its revenue, giving a clear signal towards a case of overvaluation.
Tortoise Acquisition Corp. II (NYSE: SNPR)
In February 2021, when Volta Industries went public with Tortoise Acquisition, its value increased to $2.0 billion. Its share prices escalated to $18.3 but later came down to $10.
However, like EVgo Services, it’s also a risky investment option because it is valued 43 times more than its current year revenue guidance. So if you’re willing to invest in it, wait until the company has closed the business combination with Tortoise Acquisition.
Bottom Line
As they say, watch out for falling rocks. Similarly, before investing in increasing stocks, wait for the air to clear out a bit and then make a proper decision. Never (mark the word!) go behind the crowd and regret later.