The demand for electric vehicles (EVs) has grown significantly over the past few years due to growing climate change concerns and favorable government policies. President Biden has set an ambitious target of 50% of all new car sales in the U.S. being electric vehicles by 2030. The $1 trillion infrastructure bill signed by the President on November 15 allocates $7.5 billion to accelerate the adoption of EVs and to build a nationwide network of charging stations.
According to a Deloitte report, EV sales are expected to grow more than 12-fold to 31.10 million vehicles by 2030.
Plug Power Inc. (PLUG), ChargePoint Holdings, Inc. (CHPT), and Blink Charging Co. (BLNK) are three electric vehicle stocks that have slumped in price over the past year. However, we think macroeconomic tailwinds should allow these stocks to regain momentum in the near term.
Plug Power Inc. (PLUG)
PLUG is focused on proton exchange membrane, fuel cell and fuel processing technologies, fuel cell/battery hybrid technologies, and associated hydrogen and green hydrogen generation, storage, and dispensing infrastructure. The Latham, N.Y.-based company provides end-to-end clean hydrogen and zero-emission fuel cell solutions for supply chain and logistics applications, on-road electric vehicles, and the stationary power market.
On Nov. 23, 2021, PLUG acquired Applied Cryo Technologies, Inc., which provides technology, equipment, and services for transporting, storing, and distributing liquefied hydrogen and other cryogenic gasses. The acquisition is expected to help the company advance its green hydrogen infrastructure and logistics network development.
PLUG’s revenue for the fiscal third quarter ended Sept. 30, 2021, increased 34% year-over-year to $143.92 million. In addition, the company’s net cash provided by financing activities for the nine months ended Sept. 30, 2021, increased 506.8% year-over-year to $3.58 billion.
Analysts expect PLUG’s EPS for the quarter ending Dec. 31, 2021, to increase 90.2% year-over-year to $0.11. Its revenue for the quarter ending March 31, 2022, is expected to increase 102% year-over-year to $148.84 million. Over the past year, the stock has declined 62% in price to close the last trading session at $22.83.
ChargePoint Holdings, Inc. (CHPT)
CHPT develops and markets networked EV charging system infrastructure and cloud-based services. The Campbell, Calif.-based concern helps customers locate, reserve, authenticate and transact EV charging sessions. Also, it provides an open platform that is a part of its networked charging systems and subscriptions.
On Oct. 6, 2021, CHPT completed the acquisition of has·to·be, the provider of be.ENERGISED, which is a cloud-based e-mobility EV charging and enterprise software platform. has·to·be’s acquisition by CHPT should help it strengthen its position in Europe’s charging ecosystem by utilizing its comprehensive software platform to address the complexity and fragmented nature of Europe’s charging infrastructure.
For its fiscal third quarter, ended Oct. 31, 2021, CHPT’s revenue increased 79% year-over-year to $65 million. The company’s subscription revenue came in at $13.40 million, representing a 24% increase year-over-year. Also, its non-GAAP gross margin was 27%, versus 20% in the year-ago period.
For its fiscal 2022, CHPT’s EPS is expected to increase 92.3% year-over-year to $0.60. The company’s revenue for the quarter ended Jan. 31, 2022, is expected to increase 79.2% year-over-year to $75.95 million. The stock has declined 65.5% in price over the past year to close the last trading session at $14.30.
Blink Charging Co. (BLNK)
BLNK owns and operates EV charging equipment and networked EV charging services. The Hollywood, Fla., company offers residential and commercial EV charging equipment, and its principal products and services include the Blink EV charging network, EV charging equipment, and EV-related services.
On Jan. 18, 2022, BLNK announced the deployment of EV chargers at General Motors (GM) dealerships in the U.S. and Canada. BLNK’s founder and CEO Michael D. Farkas said, “As transportation continues to shift towards becoming more electric, Blink’s technologically advanced EV charging infrastructure will help play a significant role in accelerating EV mass adoption.”
BLNK’s revenues increased 606.6% year-over-year to $6.40 million. The company’s services revenues increased 425% year-over-year to $1.38 million. And its gross profit increased 143% year-over-year to $0.89 million.
Analysts expect BLNK’s revenue for the quarter ending March 31, 2022, to increase 235.4% year-over-year to $6.64 million. Over the past year, the stock has declined 47.2% in price to close the last trading session at $24.85.
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PLUG shares were trading at $21.52 per share on Wednesday afternoon, down $1.31 (-5.74%). Year-to-date, PLUG has declined -23.77%, versus a -3.90% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...
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