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

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.




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  • Tesla
  • General Motors
  • Ford
  • BYD
  • Xpeng

Are Electric Vehicle Stocks A Good Buy?

Companies with strong track records of earnings growth and market outperformance that are forming bullish chart patterns are the best candidates for stocks to buy and watch, according to CAN SLIM guidelines.

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.

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 Oct. 30. Rivian Automotive (RIVN) has also started delivering the R1T, an electric pickup, with the R1S SUV due  in early 2022..

Meanwhile, Chinese EV stocks like Nio (NIO), Xpeng (XPEV) and Li Auto (LI) sell tens of thousands of vehicles, but are 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) will launch its first all-electric supercar in 2025, joining the ranks of EV stocks after rejecting the shift to electric vehicles for decades.

Electric Car Stocks Include Battery Stocks, Charging Stocks, EV Suppliers

The growing universe of EV stocks doesn’t end with carmakers. Other companies make car batteries and car charging stations. 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. And QuantumScape (QS) touts a major breakthrough in solid-state lithium metal batteries.

Magna (MGA), a Chevy Bolt supplier, will make battery enclosures for GM’s Hummer electric truck, due in late 2021. It already makes e-drive gearboxes for Nio and Xpeng. Magna also will make the Fisker Ocean SUV, due out late next year.

Best EV Stocks To Buy Or Watch

The charts of several EV stocks are improving after severe damage in the past year. But these stocks had the best mix of fundamentals and technicals, as of Dec. 15 .

Tesla stock has an IBD Composite Rating of 98 and an EPS Rating of 72. Shares are extended from a 900.50 buy point from a long cup base, meaning they are not in a proper buy zone. TSLA stock is well below its 50-day line, and also below the 21-day line, after tumbling 5% on Dec. 13. Shares undercut recent lows on Dec. 14. In a few days, Tesla could have a new base.

The top auto and EV stock by market cap predicts 50% average annual growth in vehicle deliveries, with 2021 expected to be faster than that pace. In 2020, deliveries grew 36% to 499,647. Its first electric pickup truck, the Cybertruck, is due in late 2022. The new Model S Plaid is Telsa’s fastest car yet, going from zero to 60 miles per hour in less than two seconds.

GM stock has an IBD Composite Rating of 81 and an EPS Rating of 42. Shares are back below a 59.44 buy point from a handle off a double-bottom base, after peaking at 65.18. On Dec. 10, GM stock broke a downtrend in a short consolidation with a powerful move, offering an aggressive entry. But it’s now under the 50-day line amid a broad market sell-off.  General Motors is spending $35 billion to develop electric and autonomous vehicles through 2025. It aims to launch 30 new EVs around the world by then. Those vehicles will include a Hummer electric truck and a BrightDrop delivery van, both set to arrive by year-end. The luxury Cadillac Lyriq electric SUV is due by mid-2022, with a Hummer electric SUV and GMC Silverado EV pickup due by early 2023.

Ford stock has a Composite Rating of 88 and an EPS Rating of 37. After vaulting above a 16.55 entry from a cup base in late October following earnings, Ford stock consolidated for several weeks. Shares then surged 9.6% on Dec. 10 to a 20-year high. Ford that day announced that it plans to make 300,000 Mustang Mach-E crossovers in 2023 for the North America and European markets, up from above 50,000 electric crossovers in 2021. But Ford shares have wiped out most of that gain.

The company recently reinstated the Ford stock dividend and hiked full-year outlook. In late May, Ford hiked spending on electric vehicles to more than $30 billion by 2025, and expects 40% of its global sales to be fully electric by 2030. Its goal is to launch 16 fully electric cars by 2022. Ford has closed reservations for the F-150 Lightning, its first electric truck, after they reached 200,000. That Cybertruck rival is due by mid-2022. Ford also owns 12% of Rivian.

BYD (BYDDF) has no Composite Rating and an EPS Rating of 23, but it is profitable. Shares are back below a 35.35 double-bottom entry, after reaching as high as 41.24. Like Tesla, BYD stock has undercut its 50-day line and its 21-day line. A strong rebound from the 50-day line could offer a buying opportunity, especially if BYDDF stock breaks a trend line. But the stock market rally attempt is under strain, which merits caution about new buys. BYD is Hong Kong-listed, trading over the counter in the U.S.

The Chinese car and battery giant is making a big shift to electrification. November sales of BYD’s electric and hybrid-electric vehicles topped 91,000, rising by roughly 10,000 for a sixth straight month. BYD, a long-time holding of Warren Buffett’s Berkshire Hathaway (BRKB), also has begun selling EVs in Norway, starting with the Tang SUV. BYD will likely substantially increase exports in the coming year, with Europe and Australia among the key markets. BYD also is major EV battery maker, supplying some other automakers. It also makes its own chips, a key reason why BYD has been able to expand rapidly in 2021.

Xpeng stock has a Composite Rating of 65 and an EPS Rating of 8. Shares broke out powerfully on earnings and hit a 10-month high intraday on Dec. 1, when Xpeng released November deliveries. The China EV startup more than tripled sales to top 15,000 for the first time, as industry chip woes start to fade. But Xpeng stock, along with Li Auto and Nio, then sold off sharply in early December, on fears that Chinese stocks will be delisted from U.S. exchanges, either by Beijing or Washington. XPEV stock has undercut support at its 50-day line, and is back below the old 48.08 buy point. It needs time to repair.

Alibaba (BABA)-backed Xpeng already sells two electric SUVs and two electric sedans, an impressive lineup for a young EV company. A new flagship SUV, the G9, will be coming in late 2022, along with a highly advanced driver-assist system and a self-driving car service.

In the near term, EV stocks still face chip constrains but those are starting to lessen. Battery costs and shortages could be an issue in the mid-term, as supplies of lithium and other raw materials struggle to rise fast enough to meet battery demands. 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.

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