The electric vehicle (EV) industry is experiencing rapid growth, and it’s not just automakers who stand to benefit. In the coming years, companies involved in producing electric car batteries are also poised to capitalize on this expansion.
In that regard, Finbold has analyzed and picked stocks of three companies that could attract investor attention due to their favorable position to play a crucial role in powering the future of transportation.
ChargePoint (NYSE: CHPT)
ChargePoint (NYSE: CHPT) is a US company that manages the largest online network of independently owned EV charging stations across 14 countries around the world. As auto manufacturers race to reduce their carbon footprint and shift toward EVs, ChargePoint is well-positioned to tackle the ever-growing demand for EV charging stations.
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In addition to operating hundreds of thousands of charging locations, ChargePoint provides services to 80% of Fortune 50 companies that see consistent revenue and profit growth.
At press time on Thursday, June 1, shares of the EV charging station maker were trading at $9.67, down 0.2% on the day. Over the past week, the stock surged more than 15%, though its year-to-date (YTD) gains remain relatively flat.
Meanwhile, 23 analysts offered their views on CHPT in the past three months, giving it a consensus rating of ‘buy.’ This is based on 17 financial experts seeing the stock as a ‘strong buy,’ 5 believing it is a ‘hold,’ while only 1 rated it as a ‘strong sell.’
Looking ahead, 20 analysts provided their price targets for the company’s shares, resulting in an average price objective of $16.60, implying a possible upside of 71.6% from current levels.
Albemarle Corp. (NYSE: ALB)
While its stock continues to struggle this year, Albemarle’s stock (NYSE: ALB) could see some traction in the near future as the company cashes in on rising lithium volumes amid strong demand, expanding capacity, and cost-saving measures in response to elevated raw material costs.
Lithium is a key component of batteries used in electric cars, and Albemarle is the largest lithium producer in the world. Having said that, Albemarle represents a unique way for investors to expose their portfolio to the EV industry without actually investing in a car manufacturer.
At the time of writing, ALB was trading at $193.53 per share, down 4.1% in the previous 24 hours. Over the past month, the stock gained more than 3.2%, although it remains down over 11.6% since the start of the year.
On TradingView, Albemarle’s stock has an average rating of ‘buy,’ based on 17 analysts suggesting it as a ‘strong buy,’ 3 suggesting a ‘buy,’ and 6 advising a ‘hold.’ Just 2 experts advised a ‘strong sell’ for ALB.
The stock’s 1-year consensus price target stands at $261.44, 35% higher than its current price.
BYD Co. (OTC: BYDDY)
Apart from being one of the biggest electric automakers in China, BYD. Co (OTC: BYDDY) EV is one of the leading EV battery suppliers in the world.
The Shenzen-based company sold the most EVs globally in 2022 when taking into account both battery-only cars and plug-in hybrids. Specifically, BYD sold 1.86 million units last year, more than 1.31 million delivered by Tesla, the world’s largest EV company by market cap.
Further, the company reportedly set an ambitious 2023 sales goal of 4 million EVs, which, if achieved, would blow away Tesla’s 2 million target.
At the time of writing, BYDDY was trading at $60.33, up 1.5% in the past 24 hours. Over the past week, the stock fell more than 4.2%, but its YTD gains remain solid at 17.58%.
In the past 90 days, 6 analysts offered their ratings for BYDDY, giving it a consensus evaluation of a ‘buy.’ Out of those, 3 analysts saw the stock as a ‘strong buy,’ while the other 3 rated it as a ‘buy.’
BYD’s average price target currently stands at $69.50, implying a potential upside of 15.2%.
The EV industry continues to grow at a rapid pace, with numerous carmakers around the world racing to secure their share in the market. But apart from car manufacturers, there are numerous other companies that could capitalize on this growth, primarily those producing technologies and components that enable cars to run on electric energy.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
