Connect with us

News

These Are The 5 Best EV Stocks To Buy And Watch Now

Published

on

EV stocks have multiplied in Tesla‘s (TSLA) wake and as electric cars look to go mainstream — but not all are created equal. Some car stocks are more ready than others for an EV future. Here are the top-rated electric-vehicle makers and EV plays.




X



  • Tesla
  • BYD
  • Li Auto
  • Global X Lithium and Battery Tech ETF
  • SQM

Are Electric-Vehicle Stocks A Good Buy?

Companies with two important characteristics generally make the best candidates for stocks to buy and watch, according to CAN SLIM guidelines. First, they need a strong track record of earnings growth. Second, the stock should be showing elements of market outperformance, and be shaping bullish chart patterns.

But most of the new EV stocks have neither. They include Fisker (FSR), Canoo (GOEV), Faraday Future (FFIE), Lordstown (RIDE) and Xos (XOS). In fact, many of these EV startups aren’t producing or delivering electric vehicles yet.


 Get Alerts To Stocks Near Buy Points With IBD Leaderboard


However, two startups have begun selling their first electric vehicles, bringing in revenue. Lucid Motors (LCID) began deliveries of the Lucid Air, a luxury electric sedan, last October. Rivian Automotive (RIVN) also began delivering the R1T, an electric pickup, in late 2021, with the R1S SUV due this year.

Meanwhile, Chinese EV stocks like Nio (NIO), Xpeng (XPEV) and Li Auto (LI) sell tens of thousands of vehicles, but remain unprofitable for now. Then there are legacy auto giants like General Motors (GM), Ford (F) and China’s BYD Co. (BYDDF) that are transforming into electric-vehicle powerhouses.

Ferrari (RACE) plans to launch its first all-electric supercar in 2025, joining the ranks of EV stocks after long resisting the shift to electric vehicles.

Electric Car Stocks Include Battery Stocks, Charging Stocks

The growing universe of EV stocks doesn’t end with carmakers. A constellation of other companies provide car batteries, car charging stations, electric motors and other EV-associated products. Among them are EV charging networks ChargePoint (CHPT), EVgo (EVGO), Blink Charging (BLNK) and Wallbox (WBX).

Hyliion (HYLN) is developing electric powertrains for big-rig trucks as well as powertrains that can be compatible with renewable natural gas and hydrogen fuel cells.

Romeo Power (RMO) makes battery packs for commercial EV fleets. QuantumScape (QS) touts a major breakthrough in solid-state lithium metal batteries. And Global X Lithium and Battery Technology ETF (LIT) holds a basket of stocks, from lithium miners to battery producers, poised to benefit from the rise of electric vehicles.

Magna (MGA) supplies battery enclosures and e-drive gearboxes to the likes of GM, Nio and Xpeng. The company also will make the Fisker Ocean SUV, likely to arrive by year end.

Best EV Stocks To Buy Or Watch

The charts of most EV stocks are under fresh strain after severe damage in the past year. Broadly, both established automakers and startups are a speculative bet on electric vehicles, itself seen as a nascent field. They have suffered as a risk-off sentiment prevails in the current market, and as shortages of key components drag on.

The electric-car stocks below have the best mix of fundamentals and technicals.

Tesla Stock: Growing EV Sales

Tesla stock, the top auto and EV stock by market capitalization, has an IBD Composite Rating of 73 and an EPS Rating of 80. Shares have rallied in July and have moved above their 50-day and 10-week lines for the first time in months. The relative strength line for TSLA stock is starting to tick up after falling to 2022 lows in June. It shows a big, long-term uptrend.

Tesla expects to grow vehicle deliveries 50% annually. In 2021, Tesla grew deliveries 87% to 936,172 vehicles.

Q2 2022 deliveries were 254,695, slightly below views for about 256,000. That was down nearly 18% vs. Q1’s record 310,048 but up 26.5% vs. Q2 2021. The Shanghai plant was down for much of April due to Covid lockdowns, with production not returning to full capacity until early June. Tesla China sales hit a record in June.

Tesla is reportedly upgrading its Shanghai factory to boost production later this year.

The Model S Plaid is Telsa’s fastest car yet, going from zero to 60 miles per hour in less than two seconds. Tesla makes four vehicles, with the vast majority the Model 3 sedan and the Model Y crossover SUV. A Cybertruck has long been teased, but won’t enter production until at least 2023. A Tesla Semi and Roadster are other planned vehicles.

BYDDF Stock Tripling EV Sales

BYD (BYDDF) has no Composite Rating and an EPS Rating of 57. BYDDF stock topped a 39.81 cup-with-handle buy point in June and is near the top of the 5% chase zone. The relative strength line is at highs on various factors, including robust EV sales and plans to supply Tesla with EV batteries. China’s BYD is Hong Kong-listed, trading over the counter in the U.S.

Chinese car and battery giant BYD has shifted entirely to battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). BYD more than tripled June and Q2 EV sales, amid Covid-19 lockdowns. That comes after it more than tripled EV sales in 2021. Backed by Warren Buffett’s Berkshire Hathaway (BRKB), BYD sells EVs in Norway and eyes other global markets.

A major EV battery maker and supplier, BYD also makes its own chips, which allowed rapid expansion in 2021 and so far this year.

LI Stock Launched New EV

Li Auto stock has a Comp Rating of 94 and an EPS Rating of 76. An IBD 50 top growth stock, Li Auto topped a 37.55 buy point in June and continues its strong lows from May interim lows. It’s above key averages and its RS line has bolted to highs.

Delisting fears and supply disruptions recently weighed on China EV stocks. Like most China-based stocks, Li Auto trades in American depositary receipts.

The China EV startup sells the Li One SUV. The Li One is a hybrid EV, with a small gasoline engine to extend its range. The L9 SUV, Li Auto’s second model, launched June 21.

Li Auto’s EV sales rebounded in June and May, jumping 63% in all of Q2 despite Covid headwinds. In 2021, Li nearly tripled EV sales. Revenue is growing at a triple-digit pace.

Lithium ETF Holds Tesla, BYD

The Global X Lithium and Battery Technology ETF rallied sharply for most of 2020 and 2021. The LIT ETF has rallied to get back above the 10-week average after slumping in the first four months of 2022. LIT is still below the 200-day line. It has a Relative Strength Rating of 78 out of a possible 99. That means it has outperformed 78% of all stocks in IBD’s database during the past year.

The largest holdings in the lithium stock ETF include Albemarle (ALB), as well as SQM, BYD and Tesla. The LIT fund also invests in miners and refiners of lithium, as well as battery producers. Most of today’s EVs use lithium-ion and lithium iron phosphate (LFP) batteries.

SQM Stock: Lithium For EV Batteries

SQM stock carries a perfect 99 Composite score and an 83 EPS Rating. SQM stock successfully broke out in May on strong earnings backed by surging lithium prices. While Sociedad Quimica y Minera has now given up gains from the breakout, its relative strength line remains not far from highs.

A decisive break above the 50-day line could offer an aggressive entry into SQM stock.

Chile’s SQM is riding the global adoption of electric vehicles, which use lithium batteries. In Q1, lithium prices skyrocketed as demand for the critical EV battery material outpaced supplies. SQM also produces iodine and potassium, used in X-rays and fertilizers respectively.


Tesla Vs. BYD: Which EV Giant Is The Better Buy?


In the near term, EV stocks will continue to face chip constraints but those are starting to lessen. Battery costs and shortages could be an issue in the midterm, as supplies of lithium and other raw materials struggle to keep up with demand. Longer term, more government support is likely headed for electric vehicles, while greater EV production should help bring down vehicle prices.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

YOU MAY ALSO LIKE:

EV Battery Technology: The Road To A Breakthrough

Is Nio Stock A Buy Right Now As Chinese Electric Cars Boom?

Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks

Find The Latest Stocks Hitting Buy Zones With MarketSmith

While Tesla Soars, EV Stocks Face A Huge Test

News

us dollar rate today us dollar rate today
Forex16 hours ago

The US dollar rate today is stable against the euro, rising against the yen

The US dollar rate today is stable against the euro, rising against the yen and weakly rising against the pound....

Eurozone gdp growth 2022 Eurozone gdp growth 2022
Forex16 hours ago

Is the EU economy growing? Quarterly GDP growth estimate for the eurozone worsened to 0.6%

Is the EU economy growing? Quarterly estimate of eurozone GDP growth worsened to 0.6%Eurozone GDP growth quarterly estimate worsened to...

Rough gas storage facility UK Rough gas storage facility UK
Economy17 hours ago

Rough gas storage facility UK to be mothballed

Rough gas storage facility UK, which was mothballed in 2017 due to safety concerns, will resume operations due to the...

decline in the US economy begins to slow decline in the US economy begins to slow
Economy17 hours ago

Will the decline in the US economy begin to slow? The economy is falling for the second quarter in a row. What does it mean?

Will the decline in the US economy begin to slow? Compared to the first quarter of 2022, U.S. GDP has...

reasons for increase in gas prices reasons for increase in gas prices
Commodities2 days ago

Experts named the main reasons for increase in gas prices in the European Union

Problems with the restoration of full operation of the Nord Stream pipeline continue to put pressure on gas futures prices...

Natural gas price Natural gas price
Commodities2 days ago

Natural gas prices in Europe exceed $2,600

Natural gas prices on the London Stock Exchange ICE record rose to more than $2,600 per thousand cubic meters for...

oil is getting cheaper oil is getting cheaper
Commodities2 days ago

Oil is getting cheaper — What’s going on in the commodities market?

Oil is getting cheaper. Oil quotes are falling Tuesday night due to concerns about slowing global economic growth and weakening...

tornado cash sanctions tornado cash sanctions
Cryptocurrency2 days ago

Sanctions against Tornado Cash boosted TORN token trading volumes

Tornado cash (TORN) token trading volumes jumped sixfold amid the announcement of sanctions against the mixer. This was pointed out...

eqonex news eqonex news
Cryptocurrency2 days ago

Eqonex news: High competition buried public crypto exchange Eqonex

Eqonex news: public U.S. crypto exchange Eqonex (EQOS) will close its services to customers on August 22 due to high...

bitcoin plummets as miners sell inventory bitcoin plummets as miners sell inventory
Cryptocurrency2 days ago

Bitcoin plummets as miners sell inventory? Miners continue to sell bitcoin, albeit in smaller volumes 

Despite lower market volatility, miners are still dumping bitcoin. Because of this, bitcoin also plummets as miners sell inventory. This...

crude oil price forecast 2022 crude oil price forecast 2022
Forex3 days ago

Crude oil price forecast 2022: WTI in free fall amid global turmoil

Crude oil prices are in free-fall at the beginning of the week, with a barrel of West Texas Intermediate currently...

is there a recession in Europe is there a recession in Europe
Economy3 days ago

Is Europe in a recession now: the consequences are listed

Is Europe in a recession now? The depth of the recession in the eurozone will depend on the pace as...

saudi aramco base oil company saudi aramco base oil company
Commodities3 days ago

Saudi Aramco based oil company sees no strong impact on its position in Asia

Saudi Aramco-based oil company does not see any impact on its position in Asia, including India, from the redistribution of...

will crude oil prices fall will crude oil prices fall
Commodities3 days ago

Oil prices have stepped up their fall. Will crude oil prices fall even more? 

During the day oil quotes turned to fall on fears of slowing growth of the Chinese economy and increasing oil...

is bitcoin rally over is bitcoin rally over
Cryptocurrency3 days ago

Investors Ask Asian Crypto Exchange’s CEO To Step Down, Bankrupt Exchange In Potential Fundraising Talks

Is the Bitcoin rally over? Institutional investors didn’t cause a new bitcoin rally. That’s what Bloomberg writes, citing members of...

coinbase stock chart coinbase stock chart
Cryptocurrency3 days ago

S&P Global downgraded Coinbase to speculative: What will happen to the Coinbase stock chart? 

Rating agency S&P Global downgraded Coinbase cryptocurrency from BB+ to BB. How will this affect the Coinbase stock chart? Coinbase...

galaxy digital to buy bitgo galaxy digital to buy bitgo
Cryptocurrency3 days ago

Galaxy digital to buy BitGo? The company declined to buy the cryptocurrency depository

Galaxy Digital to buy BitGo? Galaxy Digital, a company owned by bitcoin investor Mike Novogratz, has changed its mind about...

current dollar rate as of today current dollar rate as of today
Forex3 days ago

Current dollar rate as of today: The dollar is rising against the euro and the pound, slightly falling against the yen

Current dollar rate as of today: The dollar is moderately strengthening against the euro and pound sterling. but slightly declining...

US war with china and russia US war with china and russia
Economy3 days ago

US war with China and Russia: Kissinger says the U.S. is “on the brink” of war with Russia and China

US war with China and Russia: Former Secretary of State Henry Kissinger believes that the U.S. is “on the brink...

a threat to the u s economy are important a threat to the u s economy are important
Economy3 days ago

A threat to the US economy biggest: experts name unexpected factor

The conflict between China and Taiwan is a threat to the U.S. economy largest and can deal a blow to...

How does FED rate cut affect stock market How does FED rate cut affect stock market
Economy3 days ago

How does the FED rate cut affect the stock market? Fed spokesperson calls for continued rate hikes

The history of FED rate hikes and cuts has yet to face what is happening today. Thomas Barkin, president of...

inflation reduction act of 2022 inflation reduction act of 2022
Economy3 days ago

Inflation reduction act of 2022: U.S. Congress agrees to allocate $430 billion for climate and inflation

Both houses of Congress have approved the Inflation Reduction Act of 2022, which also entails an allocation of nearly $370...

oil prices fall again oil prices fall again
Commodities3 days ago

Oil prices fall again at the start of Monday’s trading

Global oil prices fall again Monday morning by more than 1%. Investors are evaluating a lot of factors – both...

copper price by day copper price by day
Commodities3 days ago

Copper price per pound declines on doubts about demand in China

Copper prices per pound are declining on Monday due to negative demand prospects in China, according to trading data. The...

gold price today gold price today
Commodities3 days ago

Gold price today at 1810 dollars per troy ounce

The gold price today stabilized. On Friday evening, it was at 1810 dollars per troy ounce, which might show the...

import of gold in India import of gold in India
Commodities3 days ago

Imports of gold in India fell 30% in January-July

Imports of gold in India in January-July declined by 30%. India imported $2.37 billion worth of gold in July 2022,...

oil prices daily oil prices daily
Commodities3 days ago

What will happen to Brent crude oil prices in the new week

The global oil market will be guided by fresh forecasts on the demand for the raw materials. Brent crude oil...

international oil prices international oil prices
Commodities3 days ago

U.S. Treasury Department to discuss with Brazilian counterparts restrictions on international oil prices from Russia

Deputy Treasury Secretary Brian Nelson will discuss with the Brazilian Ministry of Finance during his visit to Brazil the limitation...

Stablecoin AUSD collapse Stablecoin AUSD collapse
Cryptocurrency3 days ago

Stablecoin AUSD collapse? Collapse to $0.05 after hacker attack

Stablecoin AUSD collapse? Unknown individuals attacked the Polkadot-based Acala Network protocol and released over 1.2 billion AUSD. As a result,...

cryptocurrency trading volume analysis cryptocurrency trading volume analysis
Cryptocurrency3 days ago

Cryptocurrency trading volume analysis: Trading volume decreased by 1.7% in July

According to cryptocurrency trading volume analysis from Chinese journalist Colin Wu, July was not a very good month for the...

Trending

©2021-2022 Letizo All Rights Reserved