The 3 Most Undervalued EV Stocks to Buy in June 2024
Buckle up and get ready to take a ride on the exciting EV revolution with these undervalued stocks
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When the rulebook of the game changes every second, a few companies are reimagining and bringing some radical products to market. These are not only changing the game for the industries they are venturing into but also turning out to be great long-term investment bets.
The electric vehicle (EV) market is redefining our lifestyle at a lightning pace. Companies leading the revolution are not just driving this broad-scope change but are also offering excellent investment opportunities. From pioneering leaps in luxury EVs to breakthroughs in electric adventure vehicles, these EV giants have set the stage for the future.
As they change the face of their respective industries, they offer a unique chance to get on board for growth and innovation. Here are three leading stocks that are not just revolutionizing the future but are also changing the game in your portfolio right now.
Lucid Group (LCID)
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Lucid Group (NASDAQ:LCID) is a luxury electric vehicle maker best known for its flagship, the Lucid Air. While the vehicle has exceptional range and performance in the luxury EV segment, Lucid wants more. It aims to change the luxury EV market through cutting-edge technology and sustainable energy solutions.
A steeply innovative approach and recent company expansions in its production capabilities put it on a high-growth trajectory. Its focus on increasing manufacturing efficiency and expanding its market reach, inclusive of new markets in Europe, creates further potential.
Lucid has a market cap of $6.54 billion and a price-to-book ratio of 1.52x, which is relatively undervalued when compared to the sector median of 2.16x. The company also booked revenues of $608 million in the last fiscal year. Yahoo Finance analysts have an average one-year price target of around $3.00, creating ample room to grow from current levels.
These numbers highlight an encouraging financial position. Coupled with the fact the company is trading cheaply, Lucid Group stock is an attractive investment opportunity.
Rivian (RIVN)
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Rivian (NASDAQ:RIVN) is a company in the off-road electrification business. The company produces trucks and sport utility vehicles with its R1T and R1S being uniquely durable and capable.
Rivian is driven by its strategic partners and an enormous amount of preorders at its disposal. For example, Amazon (NASDAQ:AMZN) has preordered an avalanche of electric delivery vans. This kind of confidence in Rivian shows the long-term success of the company will most likely boom.
For Rivian, a key financial data point is its price-to-book ratio of 1.41x compared to the sector median of 2.16x. Additionally, Rivian had $1.66 billion in reported revenue in the last fiscal year. Yahoo Finance analysts have an average one-year price target of around $16.00, far above the current price of $11.74. These metrics, part of a good growth trajectory, nicely marry to the status of the stock as undervalued and make it an appealing opportunity to an investor.
Nio (NIO)
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Nio (NYSE:NIO) is the market leader for Chinese EVs with great name recognition. The EV maker’s main selling points are smart, connected electric vehicles with innovative battery technologies and autonomous driving features. The company’s popular models include the ES8, ES6 and EC6.
Nio has huge growth potential with constant innovation in battery-swapping technology and its foray into markets outside China. As the company gets bigger, it consistently increases its market share.
It is still a small company with a market cap of only $10.43 billion. Looking at its valuation, Nio has an enterprise value-to-sales ratio of 1.19x compared to the sector median of 1.27x. The company managed to report revenues amounting to $7.14 billion in the last fiscal year and this is expected to grow by over 23% year over year. All these metrics point toward ample upside potential in Nio stock.
On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
