By the end of the decade, electric vehicle (EV) charging companies are likely to be household names. Like the Exxon or Chevron gas stations of today, it’ll become second nature for the newest generation of drivers to swing by their favorite charging stations.
Allied Market Research estimated that the EV charger market will grow 27% per year and reach $25.5 billion by 2027. As nations move to reduce their carbon footprints, passenger and commercial EVs will play a starring role as will the technology that keeps them moving.
It’s no secret that EV manufacturers and charging companies will someday thrive, but with mainstream status still years away, for now, their stocks are relative novelties. Their day in the sun is coming but until then volatility driven by the latest government headline rules the day.
After being stuck in neutral for much of the year, EV stocks are recharging. Some of the biggest momenta are in the EV charging plays thanks to this week’s global climate summit and renewed optimism around the Biden administration’s infrastructure bill. Here are three stocks that look poised to ride the EV momentum well into the new year.
Is it a Good Time to Invest in Plug Power Stock?
Plug Power (NASDAQ:PLUG) is a leader in hydrogen fuel cell technology, a field that has widespread application for the broader energy sector including EV infrastructure. Why hydrogen? Well, it’s the most abundant element on the planet, contains the most energy of any fuel, and can enable zero or near-zero emission in transportation and power applications.
Plug Power is best known for its GenKey solution. It is considered a cost-effective replacement for the lead-acid batteries that currently power many of the world’s off-road industrial vehicles such as distribution center lifts. The company has also entered the on-road market through its ProGen platform which is designed to help vehicle manufacturers integrate hydrogen fuel cell technology into their cars and trucks.
The mission is clear for Plug Power. Displace environmentally unfriendly diesel fuel with green hydrogen. The execution is also straightforward. Build hydrogen plants that can feed the world’s growing appetite for green energy. Plug Power expects to begin production at its first two North American plants by mid-2022 and have more than a dozen plants up and running by 2025. As the saying goes, if you build it, they will come. With production less than a year away, the customers and investors are coming to Plug Power.
Is Blink Charging a Good EV Play?
Blink Charging (NASDAQ:BLNK) owns and operates EV charging equipment and tracks charging data through its cloud-based software a.k.a. ‘the Blink Network’. Over 24,000 Blink EV charging stations have already been deployed in the U.S. for residential and commercial purposes. They are located along popular travel routes, airports, parking lots, stores, stadiums, and workplaces. There are many more to come.
By 2023, the number of EV chargers in the U.S. is expected to triple to nearly 1 million. And with Blink the name behind nearly one out of every 10 chargers in operation today, much of the growth will come its way.
The most compelling aspect of Blink’s business model is that enters into agreements with a diverse set of municipal and private sector customers many of which are long-term. Similar to a cloud-based SaaS company, this creates recurring revenue streams that can expand as the number of stations and scope of services are broadened.
Blink Charging already boasts an impressive list of clients that includes Starbucks, Facebook, Kroger, and several major universities and cities. The credibility this creates along with its flexible agreement terms should keep the new business and financial results trending in the right direction as the EV charging story plays out.
What is a Good Small Cap EV Charging Stock?
Beam Global (NASDAQ:BEEM) has boldly set out to approach the EV charging conundrum from a very different angle. Solar power. Yes, it doesn’t get much cleaner and greener than harnessing energy from the sun.
The appropriately San Diego-based company offers a lineup of EV charging products that rely on the sun rather than the electricity grid. This is an interesting value proposition and a formidable competitive threat to other EV charging companies for multiple reasons.
Since Beam’s standalone EV Arc charging stations don’t tap into the grid, customers don’t incur lag time for securing the proper permits for construction that ‘traditional’ chargers do. And when the power grid goes out and EV chargers follow suit, solar-powered chargers keep humming along. That’s because Beam’s products can store up energy that can be used even during storms or cloudy conditions.
The business model is intriguing, but of course, as investors, we want to know if the concept will gain traction in the market and lead to financial success. If Beam can continue to make progress with its cost structure and get its pricing down, it’s hard to see that there won’t be a powerful niche if not more mainstream market for solar chargers.
Beam is a unique first mover in a broader EV charging market that has plenty of room for innovators and will have multiple winners. A strong patent portfolio, growing customer base, and lack of debt make this an intriguing dark horse to watch in the bright EV charging market.
Before you consider Plug Power, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Plug Power wasn't on the list.
While Plug Power currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
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