Written by MarketBeat Staff
March 29, 2024
We all know that electric vehicles are the future of day-to-day transportation. They are simpler to manufacture than their gas-combustion cousins. They allow for the easy integration of driver assistance and other technologies. And, they can be refueled in your garage with renewable energy from the grid.
How does an investor profit from this trend? Your natural first thought might be to put money in Tesla, but it's hard to make money off a company that is already trading at a price-to-earnings ratio of 50 (or sometimes even more!). Most of the future growth of Tesla is already baked into its share price, unfortunately.
We've also heard about companies like Nikola and Rivian that want to be the "next Tesla," but so far none of them have shown themselves to be formidable competitors to Elon Musk's electric vehicle powerhouse. Some of them even turned out to be outright frauds.
So, how do we profit from the electric vehicle mega-trend? We look at other companies in the E.V. supply chain that are providing parts, equipment, and services to major automobile manufacturers as they begin the transition to producing fully electric vehicles.
We've conferred with Wall Street's top-ranked research analysts and scoured hundreds of their reports to find the best E.V. companies that you can invest in right now. We've identified seven companies that stand to benefit from the electric vehicle mega-cycle and Wall Street's best analysts are giving these companies "buy" and "strong buy" ratings in their proprietary research reports.
- Consensus Rating
- Hold
- Rating Score
- 2.4
- Ratings Breakdown
- 5 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $90.00 (6.2% Downside)
About Textron
Textron Inc operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts.
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Recent Analyst Ratings
- Consensus Rating
- Moderate Buy
- Rating Score
- 2.5
- Ratings Breakdown
- 7 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $16.98 (39.3% Upside)
About Vale
Vale SA, together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services.
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Recent Analyst Ratings
#3 - Element Fleet Management (TSE:EFN)
- Consensus Rating
- Moderate Buy
- Rating Score
- 2.8
- Ratings Breakdown
- 6 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- C$27.63 (26.2% Upside)
About Element Fleet Management
Element Fleet Management Corp. operates as a fleet management company primarily in Canada, Mexico, Australia, and New Zealand. The company offers end-to-end fleet cars, trucks, and material handling support equipment acquisition; and end-to-end electric vehicle fleet including fleet planning, charging infrastructure solutions, acquisition, financing, maintenance, and remarketing.
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Recent Analyst Ratings
#4 - Genuine Parts (NYSE:GPC)
- Consensus Rating
- Hold
- Rating Score
- 2.4
- Ratings Breakdown
- 4 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $167.78 (8.3% Upside)
About Genuine Parts
Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. It operates in two segments: Automotive Parts Group and Industrial Parts Group segments. The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and equipment and parts used by repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, and individuals.
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Recent Analyst Ratings
- Consensus Rating
- Moderate Buy
- Rating Score
- 2.5
- Ratings Breakdown
- 2 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $87.67 (4.9% Downside)
About Cabot
Cabot Corporation operates as a specialty chemicals and performance materials company. The company operates through two segments, Reinforcement Materials and Performance Chemicals. It offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions.
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Recent Analyst Ratings
#6 - Shoals Technologies Group (NASDAQ:SHLS)
- Consensus Rating
- Moderate Buy
- Rating Score
- 2.8
- Ratings Breakdown
- 14 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $21.18 (89.4% Upside)
About Shoals Technologies Group
Shoals Technologies Group, Inc provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. The company designs, manufactures, and sells system solutions for both homerun and combine-as-you-go wiring architectures, as well as offers technical support services.
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Recent Analyst Ratings
- Consensus Rating
- Moderate Buy
- Rating Score
- 2.8
- Ratings Breakdown
- 5 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $28.29 (253.1% Upside)
About Enovix
Enovix Corporation designs, develops, and manufactures lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.
Recent Analyst Ratings
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