BEEM - The 3 Best EV Charging Stocks to Buy in May 2024
2024-05-10 06:30:00 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The electric vehicle ( EV ) revolution has been one of the most captivating investment trends of the decade. It has captured the imagination of investors and shaped the future of transportation.
The global demand for EVs shows signs of waning, a development that may cause concern among some market participants. Nonetheless, the overarching sentiment surrounding the sector’s future remains optimistic.
However, not all EV charging stocks are created equal. The best companies in this sector are those that don’t fully have investors’ attention, due to their cheaper valuations.
So, let’s examine three of the best EV charging stocks that are likely to be strong contenders for the rest of 2024. Their futures look bright.
Blink Charging (BLNK)
Blink Charging (NASDAQ: BLNK ) operates a network of over 30,000 charging ports across multiple countries. Furthermore, it has established significant partnerships with large corporations like Meta Platforms (NASDAQ: META ) and Starbucks (NASDAQ: SBUX ).
The company has announced plans to more than triple its EV charger production capacity with the construction of a new 30,000-square-foot factory in Maryland. This new facility will enable Blink to boost annual production from 15,000 units to over 50,000 units. Also, BLNK has integrated chargers from its acquisitions. An example is SemaConnect being added into its global network, increasing the total to nearly 73,000 charging ports.
Looking forward, Blink Charging projects a continuation of growth . In fact, sales are expected to reach $171 million in 2024 and further increase to $227 million by 2025. Net losses are anticipated to continue, forecasted at $62 million for 2024. However, an improvement is anticipated in 2025 to a net loss of $31 million?.
Therefore, BLNK may be risky. But it’s this risk that gives it a strong upside, thus making it one of those stocks for investors to consider.
Wallbox (WBX)
Wallbox (NYSE: WBX ) offers a range of charging and energy management solutions and is rapidly expanding its presence globally.
Recently, the company initiated operations at its new North American manufacturing facility in Arlington, Texas. This significantly bolsters its production capabilities within the region. The addition aligns with the launch of the Supernova 180 , a state-of-the-art DC fast charger designed to meet the robust demands of North American users?.
Also, WBX has shown strong financial performance with significant revenue growth . In Q4 of 2023, the company reported a substantial revenue increase, reaching €91.4 million, marking a growth of 154% from the same quarter in the previous year. However, despite this revenue surge, Wallbox reported a net loss of €29.6 million for the quarter.
For the full year of 2023, WBX achieved revenues totaling €264.5 million, a 123% increase from 2022, But, the net loss widened to €78.9 million compared to €66.8 million in 2022.
Currently, the stock holds a strong buy rating from analysts, along with a 537.58% predicted upside for its stock price.
Beam Global (BEEM)
Beam Global (NASDAQ: BEEM ) differentiates itself by offering solar-powered EV charging solutions, which do not require a grid connection. The company’s off-grid, rapid-deployment technology, EV ARC, has been particularly successful.
However, BEEM reported its financial results for Q1 of 2024, showing earnings of $20.03 million for the quarter. Also, the company reported a net loss of $0.51 per share. Over the past year, Beam Global has experienced a consistent pattern of losses, totaling $1.47 per share.
Therefore, BEEM is one of my contrarian picks. The reason I still think it could be undervalued is that it has a tiny market cap of under $100 million and a stock price of around $6.25.
BEEM might offer the right upside potential for investors who are bullish on the world’s transition to green energy, while also seeking out very high risk, high reward investments.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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