It’s time to revisit some of the top EV charging stocks to buy on the dip. All of this is happening as electric vehicle sales start to accelerate again.
Ford Motor (NYSE:F) just said its electric vehicle sales were up 64.7% in May. It also said its EV sales were up nearly 88% higher than year-ago numbers for the first five months of the year. Even General Motors (NYSE:GM) just said May was its best month for EV sales ever. Hyundai said its U.S. EV sales were up 42% in May year over year. Kia America sales were up 5.1% year over year, too.
Those numbers may have even been higher if it wasn’t for the shortage of EV charging stations.
Remember, of the 500,000 EV charging stations that should have been installed, seven are up and running. If the current administration wants 50% of all vehicles to be electric by 2030, those other 499,993 charging stations need to be set up already. Until that happens, 80% of Americans say they won’t buy an electric vehicle.
With the demand for charging stations clearly growing and improving EV sales, let’s revisit some of the top EV charging stocks to buy on the dip.
EVgo (EVGO)
Just a couple of days ago, I said EVgo (NASDAQ:EVGO) has substantial upside potential.
For one, earnings have been solid. Its earnings per share loss of nine cents beat by five cents. Revenue of $55.2 million, up 118.2% year-over-year, beat by $1.85 million. Plus, it expects to achieve adjusted EBITDA breakeven results by 2025.
Two, I noted that Chief Executive Officer Badar Khan just bought 125,000 shares at an average price of $2.05 for about $251,250. Plus, I noted that analysts at Benchmark just upgraded the stock to a buy rating, believing it could achieve positive EBITDA by 2025.
While the stock has been stuck in a significant downtrend for the last two years, buy it, hold it, and forget about it. In a year or so, check back in on it, with hopes that the U.S. gets its act together and installs all of the much-needed EV charging stations.
Beam Global (BEEM)
Over the last few weeks, Beam Global (NASDAQ:BEEM) dropped on earnings.
While its earnings per share loss of 21 cents beat by four cents, revenue of $14.6 million missed by $4.71 million. While not great, I’d still use recent weakness as a buying opportunity. For one, while the $14.6 million in revenue missed analyst expectations, it was still up 12% year-over-year for the company.
Second, Beam Global saw a 310% increase in EV charging new orders in the first quarter. It received a $7.4 million order from the U.S. Army for 88 off-grid EV ARC systems, a $4.8 million order from the U.S. Department of Homeland Security, a $1.7 million order from the North Carolina Department of Adult Correction for sustainable EV charging infrastructure products and $1.2 million in orders from leading European market telecommunications provider.
In addition, as noted by Chief Executive Officer Desmond Wheatley: “Our sales pipeline is robust and we are working on the most significant opportunities in our history, particularly through Beam Europe. As we noted during the quarter, winning the UK’s equivalent of our federal GSA contract was a significant milestone for Beam Europe, resulting in our first million-dollar EV ARC contract in Europe from the British Army.”
Again, I’d use weakness in BEEM as a buying opportunity.
Blink Charging (BLNK)
The weakness of Blink Charging (NASDAQ:BLNK) is also a buying opportunity.
After failing at about $3.60, Blink dropped to $2.60, which appears to have found strong support. From $2.60, I’d like to see BLNK initially retest its prior high.
Helping, the company says it’s a step closer to being an EV charging solutions provider to the U.S. government. It now has an “in process” designation from the Federal Risk and Authorization Management Program for EV charging solutions. If Blink becomes the government’s official EV charging provider, other U.S. agencies can contract Blink for EV charging.
Even better, Blink was also just chosen to provide EV charging and services for Grupo Fame, a BYD (OTCMKTS:BYDDY) dealership, one of the biggest in Mexico.
Again, I’d use recent weakness as a buying opportunity with Blink Charging. It’s another one to just buy, hold, and forget about at the moment.
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On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.