5 Best EV Charging Stocks to Buy Now

In this article, we shall discuss the 5 best EV charging stocks to buy now. To read our detailed analysis of the EV charging sector in 2022, go directly and see 10 Best EV Charging Stocks to Buy Now.

5. Lucid Group Inc. (NASDAQ:LCID)

Hedge Fund Holdings: 15

Based in Newark, California, Lucid Group Inc. (NASDAQ:LCID) is an American EV manufacturer. In 2021, Lucid Group Inc. (NASDAQ:LCID) partnered with Electrify America to install a nationwide EV charging network for Lucid’s (NASDAQ:LCID) vehicles. In Q3 2022, the company beat EPS estimates of -$0.31 by $0.07, posting earnings of -$0.24 per share.

The stock is an undervalued hypergrowth company, one of the most profitable in the current EV climate. Lucid (NASDAQ:LCID) has huge scope for growth in revenue, and more often than not, has demonstrated strong fundamentals. Furthermore, the company has recently unveiled plans to launch a new SUV which is expected to go into production next year. Due to the aforementioned factors, the company’s revenue is likely to increase substantially in the coming years, and at its current valuation, Lucid (NASDAQ:LCID) is an ideal pick for the right investor.

4. ABB Ltd. (NYSE:ABB)

Hedge Fund Holdings: 16

Headquartered in Zurich, Switzerland, ABB Ltd. (NYSE:ABB) is a Swedish-Swiss multinational automation corporation which specializes in the manufacture of major electrical equipment, robotics, and other automation technology. The company is a world leader in electric vehicle infrastructure, and offers a variety of EV charging solutions, including the ABB E-Mobility portfolio.

ABB Ltd. (NYSE:ABB) posted stellar third-quarter results, generating above-average revenue and consistent growth with respect to the previous quarter, as well as the most favorable margins in years. Although the macro headwinds are worrisome, with short-cycle demand expected to slump in 2023, the stock is extremely well-leveraged to considerable growth opportunities be it in electrification, decarbonization, or automation. ABB (NYSE:ABB) is also considerably undervalued, presenting an excellent buying opportunity for value investors looking to shield themselves from the grim macroeconomic outlook.

Artisan Partners explained the drop in ABB’s (NYSE:ABB) share price in their Q2 2022 investor letter, a copy of which can be obtained here. This is what they had to say:

“ABB Ltd (NYSE:ABB) is a Swiss-based industrial conglomerate that manufactures electronic products and equipment. There is no new significant fundamental news on the company. We believe the share price decline relates to negative sentiment associated with industrial companies.”

3. Allego N.V. (NYSE:ALLG)

Hedge Fund Holdings: 18

Based in the Netherlands, Allego N.V. (NYSE:ALLG) is a Dutch company engaged in providing charging solutions for  electric vehicles, including cars, buses, and trucks. The company’s services are primarily limited to Europe, with charging solutions connected to Allego’s (NYSE:ALLG) proprietary platform, EV-Cloud. The company has installed charging stations in more than 11,800 charging areas across Europe.

On November 25, Cowen analyst Gabe Daoud lowered the price target on Allego (NYSE:ALLG) to $4 from $10, maintaining an Outperform rating on the shares. According to the analyst, the Q3 revenue missing consensus is likely due to underestimated seasonality; focus should remain on Q3 2022 EBITDA which was perfectly in line with consensus estimates. Daoud also reiterated that Allego (NYSE:ALLG) operates in a huge market space, where it has immense potential and opportunity to deliver strong growth. And as turbulence within the macroeconomic climate shows no signs of receding, the company’s attractive business model supported by strong marketing and growth strategies can offer shelter to investors.

2. XPeng Inc. (NYSE:XPEV)

Hedge Fund Holdings: 20

Headquartered in Guangzhou, XPeng Inc. (NYSE:XPEV) is a Chinese EV manufacturer which also focuses on the development of driver aid software and charging networks. XPeng’s (NYSE:XPEV) charging network has expanded to over 1000 charging stations within China and XPeng (NYSE:XPEV) vehicle users have access to more than 200,000 third party stations, which the company is in contractual partnerships with.  By 2025, the company intends on having more than 2000 super-fast charging stations across China.

On November 28, DBS Bank initiated coverage of XPeng Inc. (NYSE:XPEV) shares with a Buy rating and a $6.18 price target. The bank states that although investor sentiment around the stock is unfavorable due to recent sales weaknesses, XPeng (NYSE:XPEV) has strongly improved on its internal management and product lineup, which is likely to drive monthly sales volume from 5000 units in October to more than 10,000 per month in 2023. This is also due personnel reshuffles and product adjustments. The company has good long-term prospects supported by an expanding product offering. Q3 2022 was a decent quarter, especially when the COVID-related restrictions are considered. This situation is expected to improve in the coming weeks. Furthermore, the upside potential on the stock is exceptional as the company continues to execute well on its growth strategy.

1. Tesla Inc. (NASDAQ:TSLA)

Hedge Fund Holdings: 88 

Based in Austin, Texas, Tesla Inc. (NASDAQ:TSLA) is an American multinational automotive and clean energy company. The company specializes in the design, manufacture and distribution of electric vehicles, battery energy storage, solar panels and Supercharging stations. According to recent data, Tesla (NASDAQ:TSLA) operates more than 36,000 Superchargers in nearly 4000 stations across the world. In Q3 2022, the company posted an EPS of $1.05, beating estimates of $0.99 by $0.06.  Hedge fund sentiment around Tesla Inc. (NASDAQ:TSLA) has grown more favorable in Q3 2022, with 88 hedge funds long the stock, compared to 73 in the preceding quarter.

On December 5, Piper Sandler analyst Alexander Potter reiterated an Overweight rating and a $340 price target on Tesla Inc. (NASDAQ:TSLA). According to the analyst, the stock has a non-linear growth curve and a winner-take-all potential. Furthermore, the company’s FSD and robotics have the potential to cultivate significant growth. And although the company’s Q3 2022 returns were well in-line with consensus expectations, they were both stronger and of higher quality as compared to Potter’s expectations. The analyst expects that Tesla (NASDAQ:TSLA) is well-leveraged to deliver record Q4 2022 earnings, as its factories continue to scale globally.

Here is what Alger Capital had to say about Tesla Inc. (NASDAQ:TSLA) in their Q3 2022 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Shares outperformed during the quarter despite COVID-19 shutdowns at the company’s shanghai production plant early in the period. During this quarter, the company also ramped up production at its newer Germany and Texas plants. While investors were aware of these challenging variables, the company’s quarterly results exceeded expectations thanks to lower-than-expected operating expenses. Investors are aware that ramping up electric vehicle production is challenging and recognize it’s difficult to estimate production rates.”

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