2 Lesser-Known Electric Vehicle Manufacturers That Wall Street Expects Will Double in 2022

: ARVL | Arrival News, Ratings, and Charts

ARVL – The easing semiconductor chip shortage and a growing global focus on creating a sustainable environment should drive the growth of the electric vehicle (EV) industry next year. Hence, Wall Street analysts expect shares of lesser-known EV manufacturers Arrival (ARVL) and Canoo (GOEV) to double in price in 2022. Let’s discuss.

Heightened demand for zero-emission cars and government support made 2021 a momentous year for electric vehicles (EVs) despite the negative impact of the semiconductor chip shortage on production. EV sales are expected to exceed 450,000 in 2021. This momentum is expected to continue next year when many more all-electric models will arrive in showrooms.

In addition, improvements in battery technology, lower costs, improving charging infrastructure, and more attractive models from manufacturers are all likely to boost EV sales. Indeed, the global electric vehicle market is expected to increase more than four-fold to $725 billion by 2026. Also, Edmunds analysts expect 15.2 million new cars to be sold in 2022.

Given this backdrop, we think it could be worth adding shares of lesser-known EV manufacturers Arrival (ARVL) and Canoo Inc. (GOEV) to one’s watchlist. Wall Street analysts expect these stocks to more than double in price in 2022.

Click here to checkout our Electric Vehicle Industry Report for 2022

Arrival (ARVL)

Based in Howald, Luxembourg, ARVL provides electric solutions produced by local micro-factories. The company’s portfolio of EVs includes commercial EV vans, buses, and cars. ARVL also offers technology, product, supply chain, automotive, mobility, fintech, and other services.

This month, ARVL partnered with Uber drivers to create ARVL’s first electric car, Arrival, to transform the global ride-hailing industry. With these new electric cars, ARVL should be able to support drivers by developing the best possible product for ride-hailing that elevates the experience for both drivers and passengers.

For the third quarter, ended September 30, 2021, ARVL’s net finance income was €20.39 million ($23.08 million), versus a €1.22 million ($1.38 million) net finance cost. At the end of the period, the company’s cash and cash equivalents increased significantly year-over-year to €380.7 million ($430.85 million). ARVL’s EPS is estimated to grow 64% next year.

Closing the last trading session at $7.91, the $16.50 average analyst price target represents a 108.6% potential upside.

Canoo Inc. (GOEV)

Incorporated in 2017, GOEV in Torrance, Calif., is a technology mobility company that manufactures EVs for the commercial and consumer markets in the United States. The company offers B2B delivery vehicles, multi-purpose delivery vehicles, and lifestyle vehicles using skateboard architecture technology.

This month, GOEV announced that it would accelerate and shift its production of the breakthrough electric vehicles from Europe to the United States. GOEV believes that the initiatives are another step in reducing risk and increasing certainty.

During the third quarter, ended September 30, 2021, GOEV’s cash and cash equivalents came in at $414.9 million. GOEV has surpassed the consensus EPS in three of the trailing four quarters.

The $16.67 consensus price target represents a 117.6% potential gain from the last closing price of $7.66.

Click here to checkout our Electric Vehicle Industry Report for 2022

ARVL shares were trading at $8.02 per share on Thursday morning, up $0.11 (+1.39%). Year-to-date, ARVL has declined -71.48%, versus a 29.67% rise in the benchmark S&P 500 index during the same period.

About the Author: Priyanka Mandal

Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ARVLGet RatingGet RatingGet Rating
GOEVGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

Inflation Not Fading Fast Enough for Stock Investors

Investors may have celebrated the end of high inflation too soon. The CPI report shows inflation bouncing higher and thus pushing back the start date for Fed rate cuts. This has the S&P 500 (SPY) coming off recent highs. This begs questions like how much more downside could we see? And when will the bull market get back on track? 44 year investment veteran Steve Reitmeister shares his answers to these questions in this timely commentary including a preview of his top picks to stay ahead of the pack. Read on below for more...

3 Auto Stocks to Consider Over TSLA in April

Tesla (TSLA) reported a decline in deliveries in the first quarter, and Wall Street expects the company to deliver fewer vehicles than last year. Furthermore, rising competition, slowing EV sales, and stretched valuation make TSLA unattractive from an investment standpoint. Considering these factors, investors could consider buying fundamentally strong auto stocks Blue Bird (BLBD), Rolls-Royce Holdings (RYCEY), and Stellantis (STLA) over Tesla (TSLA). Read more...

3 Top-Rated Tech Stock Buys for Value in April

The technology sector is undergoing a notable surge, propelled by increasing digitalization endeavors among businesses and governmental support for technological progress. So, fundamentally sound tech stocks Box Inc. (BOX), Teradata (TDC), and Materialise (MTLS), which seem pretty undervalued, might be ideal buys this month. Continue reading...

Top Software Stocks at the Forefront of Market Gains

The software industry's prospects appear bright due to increasing investments in digital transformation, high demand for advanced software services from various sectors, and the integration of emerging technologies such as generative AI. Therefore, investors could consider buying quality software stocks Autodesk (ADSK), DocuSign (DOCU), and Pegasystems (PEGA) for solid gains. Read more...

Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

Read More Stories

More Arrival (ARVL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ARVL News