The electrification of transportation has been gaining momentum in recent years and it’s no secret that electric vehicles (EVs) are becoming more popular than ever. The International Energy Agency predicts that the number of electric cars on the road could reach more than 300 million by 2030, up from just 16.5 million in 2021.
What’s often overlooked is the crucial role that infrastructure plays in the EV revolution. Without adequate EV infrastructure, the growth of the EV market could be hindered. That’s why many investors are now turning their attention to EV infrastructure investment opportunities.
Investment in EV infrastructure is expected to grow significantly in the coming years. According to a report by Precedence Research, the global EV charging infrastructure market size was valued at $25.56 billion in 2022 and is expected to reach $229.1 billion by 2030, witnessing a CAGR of 31% from 2023 to 2030. This growth is largely driven by the increasing adoption of EVs, government incentives and the need for charging infrastructure.
Play EV Infrastructure Growth With These Stocks
There are several investment opportunities for investors looking to capitalize on the growth of EV infrastructure. One way could be to invest in companies that manufacture and sell EV charging equipment. These companies are poised to benefit from the growth in EV adoption and the need for more charging stations. Stocks like Blink Charging BLNK and ChargePoint Holdings CHPT fit the bill.
Blink Charging is a leading provider of EV charging equipment. The company offers a wide range of charging solutions, including Level 2 and DC fast charging stations. The company also recently announced a partnership with EnerSys, a global provider of stored energy solutions, to develop and manufacture high-powered charging systems.SemaConnect buyout enables Blink to gain full control over its supply chain, making it the only EV charging firm providing 100% vertical integration. The firm’s new product offerings, including Vision, EQ 200, Series 3, PQ 150, and 30kW DC Fast Charger are likely to drive the company’s growth. BLNK currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the company’s 2023 revenues implies a year-over-year growth of 66%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ChargePoint is another leading provider of EV charging solutions. The company offers a comprehensive suite of charging solutions for both commercial and residential customers. This charging company is the market leader in North America in commercial Level 2 AC chargers. It is also actively focusing on expansion into European markets. Currently, ChargePoint has more than 225,000 activated charging ports. The launch of CP6000, ChargePoint’s AC EV charging solution, is boosting CHPT’s prospects. Acquisitions of has·to·be and Viriciti have accelerated CHPT’s position in the EV charging ecosystem. ChargePoint has delivered more than 158 million charging sessions so far. CHPT currently carries a Zacks Rank #3. The Zacks Consensus Estimate for CHPT’s current fiscal revenues implies a year-over-year growth of 52%.
Another investment opportunity in the EV infrastructure space is to invest in companies that provide EV charging services. These companies operate networks of charging stations and generate revenues through subscription fees or pay-per-use charges. EV king Tesla TSLA is one such company.
While Tesla is best known for its EVs, the company also operates a network of charging stations known as the Tesla Supercharger network. The network includes over 40,000 charging stalls worldwide and has become a crucial part of Tesla’s EV ecosystem. Superchargers can add up to 322 miles of range in just 15 minutes. The company currently carries a Zacks Rank #3. The Zacks Consensus Estimate for TSLA’s 2023 revenues implies a year-over-year growth of 25%.
Investors can also consider investing in companies that provide EV-related infrastructure, such as battery manufacturers and renewable energy companies. Renewable energy sources such as solar and wind power are crucial for powering EVs and reducing carbon emissions. These companies are key players in the EV ecosystem and are poised to benefit from the growth of the EV market. In this context, stocks like Albemarle Corporation ALB and First Solar FSLR could also help you capitalize on the EV infrastructure market.
Albemarle is a global leader in the production of lithium, a key component in EV batteries. The company is well-positioned to benefit from the growth of the EV market, as demand for lithium is expected to increase significantly in the coming years. The company’s Talison joint venture (49%) in Australia, La Negra projects, JV with Mineral Resources and acquisition of the Qinzhou plant in China should fuel the company’s Albemarle’s lithium business. ALB currently carries a Zacks Rank #3. The Zacks Consensus Estimate for ALB’s 2023 revenues implies a year-over-year growth of 61.1%.
First Solar is a leading manufacturer of solar panels and a provider of solar energy solutions. The company’s thin-film solar panels are highly efficient and cost-effective, making them an attractive option for both commercial and residential customers. First Solar is likely to maintain its position as a leading manufacturer of solar modules and may continue to witness strong demand for the same, going forward. This is expected to bolster its revenue generation prospects. First Solar anticipates that its expansion strategy should enable the company to boost its manufacturing capacity by approximately 11 GW by 2025. First Solar currently carries a Zacks Rank #3. The Zacks Consensus Estimate for FSLR’s 2023 revenues implies a year-over-year growth of 34.4%.
Bottom Line
The EV market is growing rapidly, leading to significant investment opportunities in the EV infrastructure space. As countries around the world aim to reduce carbon emissions, demand for green cars and the necessary infrastructure to support them is set to soar. So, if you want to bet on the greener mode of transportation but are concerned about the lofty valuations of pure-play EVs, you can benefit from investing in companies involved in EV charging equipment, EV charging services, battery manufacturing and renewable energy.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
