3 Beaten-Down EV Supplier Stocks to Avoid This Fall

NASDAQ: WOLF | Wolfspeed Inc. News, Ratings, and Charts

WOLF – Even though the market for electric vehicles (EVs) is growing, supply chain issues and a lack of EV charging stations are still holding it back. Moreover, rising geo-political conflicts might further deteriorate the supply chain. Therefore, beaten down and fundamentally-weak EV supplier stocks Wolfspeed (WOLF), Luminar (LAZR), and EVgo (EVGO) might be best avoided this fall. Keep reading….

Despite overwhelming demand, electric vehicle (EV) suppliers have witnessed significant setbacks amid global chip supply bottlenecks. Moreover, EV charging equipment shortages have also been a significant challenge.

Brent Gruber, executive director of global automotive at J.D. Power, said, “Not only is the availability of public charging still an obstacle, but EV owners continue to be faced with charging station equipment that is inoperable.”

In addition, the escalating China-Taiwan conflict might lead to a worsening global chip shortage – a basic requirement for EVs. Taiwan is a major exporter of chips, and an impending war might trigger a neck-deep chip shortage globally.

Given the backdrop, beaten-down and fundamentally weak EV supplier stocks Wolfspeed, Inc. (WOLF - Get Rating), Luminar Technologies, Inc. (LAZR - Get Rating), and EVgo, Inc. (EVGO - Get Rating) might be best avoided this fall.

Wolfspeed, Inc. (WOLF - Get Rating)

WOLF operates as a powerhouse semiconductor company and focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, China, the United States, Japan, South Korea, and internationally.

WOLF’s total long-term liabilities came in at $1.09 billion for the period ended June 26, 2022, compared to $881.50 million for the period ended June 27, 2021. Its other long-term liabilities came in at $55.30 million, compared to $44.50 million for the same period. Also, its total shareholder’s equity came in at $2.44 billion, compared to $2.12 billion in the year-ago period.

WOLF’s EPS is estimated to decline 33.6% per annum for the next five years. Over the past nine months, the stock has lost 5.7% to close the last trading session at $116.90.

WOLF’s POWR Ratings reflect its poor prospects. It has an overall grade of D, which indicates a Sell. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

Also, the stock has an F grade for Value and Quality and a D for Stability. Click here to access the additional POWR Ratings for WOLF (Growth, Momentum, and Sentiment). WOLF is ranked #88 out of 95 stocks in the Semiconductor & Wireless Chip industry.

Luminar Technologies, Inc. (LAZR - Get Rating)

LAZR provides sensor technologies and software for passenger cars and commercial trucks in North America, Asia Pacific, Europe, and the Middle East. It has two business segments: Autonomy Solutions and Components.

LAZR’s gross loss came in at $18.16 million for the second quarter ended June 30, 2022, up 1,076.2% year-over-year. Its loss from operations came in at $104.44 million, up 136.3% year-over-year. Moreover, the company’s loss per share was $0.27, up 145.5% year-over-year.

LAZR’s EPS is expected to remain negative in 2022 and 2023. Its EPS is estimated to decline 97.4% year-over-year in 2022 and 92.6% per annum for the next five years. It missed EPS estimates in three of the four trailing quarters. Over the past year, the stock has lost 48.8% to close the last trading session at $8.71.

LAZR’s POWR Ratings are consistent with this bleak outlook. It has an overall rating of Strong Sell and an F grade for Value, Sentiment, Quality, and Stability. Click here to access LARZ ratings for Momentum and Growth. It is ranked last among 66 stocks in the Auto Parts industry.

EVgo, Inc. (EVGO - Get Rating)

EVGO is the owner and operator of a network for direct current fast charging in the United States. The business directly provides electricity to drivers and public charging stations for fleets and ridesharing vehicles and services linked to original equipment manufacturer charging.

EVGO’s operating loss came in at $37.05 million for the second quarter ended June 30, 2022, up 111.1% year-over-year. Its cash from operations came in at negative $38.37 million, compared to a negative $1.36 million in the year-ago period. Moreover, its total current liabilities came in at $63.42 million for the period ended June 30, 2022, compared to $46.87 million for the period ended December 31, 2021.

Street expects EVGO’s EPS to decline 350% year-over-year to a negative $0.15 for the quarter ended December 2022. Its EPS is expected to remain negative in 2022 and 2023. Over the past nine months, the stock has lost 32.7% to close the last trading session at $9.21.

EVGO has an overall F grade, equating to a Strong Sell in our POWR Ratings system. Also, it has an F grade for Stability and a D for Growth, Value, Sentiment, and Quality. Click here to access EVGO rating for Momentum. It is ranked #86 out of 91 stocks in the Industrial – Equipment industry.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


WOLF shares were trading at $117.26 per share on Monday afternoon, up $0.36 (+0.31%). Year-to-date, WOLF has gained 4.91%, versus a -14.10% rise in the benchmark S&P 500 index during the same period.


About the Author: Riddhima Chakraborty


Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
WOLFGet RatingGet RatingGet Rating
LAZRGet RatingGet RatingGet Rating
EVGOGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Trump or the Fed More Important to Stock Investors?

The S&P 500 (SPY) is flirting with new highs once again. But it is not very clear what is driving these stock price gains. That is why Steve Reitmeister shares his latest views including a market outlook, trading plan and top picks to stay on the right side of the action.

3 Dividend Growth Stocks for Long-Term Wealth

Dividend-growth stocks offer steady income and long-term value. With the Fed holding rates and inflation expected to ease, now is an opportune time to invest in companies like AbbVie (ABBV), Energy Transfer (ET), and Cheniere Energy (CQP) that consistently raise payouts. Read more…

3 Sub-$10 Tech Stocks with Multibagger Potential

The tech market is booming, fueled by AI, cloud computing, and digital transformation. With next-gen software, automation, and 5G driving growth, investors have massive opportunities. For those seeking high potential without the hefty price tag, sub-$10 stocks like Yext, Inc. (YEXT), Eventbrite (EB), and inTEST Corp. (INTT) could be your next big win. Read more...

Viavi Solutions vs. Lumentum Holdings: Which Optical Tech Stock Shines Brighter?

The optical tech industry is well-positioned for growth due to technological advancements and increasing demand for seamless connectivity. So, let’s analyze optical tech stocks, Viavi Solutions (VIAV) and Lumentum Holdings (LITE), to determine which optical tech stock shines brighter. Read on...

Investors in “Wait and See” Mode

Have you noticed that the S&P 500 (SPY) has been trading in a tight trading range of only 6,000 to 6,100 the past few weeks? Steve Reitmeister shares why this is happening along with a game plan for being on the right side of the market action. Read on for the full story...

Read More Stories

More Wolfspeed Inc. (WOLF) News View All

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