Ready to charge up your EV product portfolio? Your timing is perfect, because shares of ChargePoint Inc. (CHPT) are priced for a buy.
If there’s any point in history to consider alternative energy stocks, this is it. Yet, you don’t have to bet on the success of any particular EV company to win the investing game.
Instead, you can wager on a company which provides vehicle charging solutions that different cars can use. Let’s delve into the stock’s price action right now. (See ChargePoint's stock charts on TipRanks)
A Quick Look at CHPT Stock
A few words of caution: CHPT stock is a fast mover, to say the least. On August 5, 2021, the stock moved up 6% to breach $24, and that wasn’t a particularly unusual day for ChargePoint.
The point is that this stock is only appropriate for small position sizes. Please don’t load up on ChargePoint stock, even if you believe in the company’s future.
The next thing to know is that on a 12-month trailing basis, ChargePoint has negative earnings of $6.47 per share. That's not a favorable number for a $24 stock.
In addition, ChargePoint has a quarterly earnings release coming up soon. That could change the CHPT share price drastically, so it’s perfectly OK to wait until that event has passed before staking a position.
All of that having been said, it’s nice to know that CHPT stock is trading at a favorable price point for prospective investors.
The stock has come down to the low $20s not just once, but on four separate occasions recently: in March, April, May, and August.
That’s a power quartet of support points, and they aren’t hardwood floors. The share price could break down below $20 at any given moment.
Still, informed traders tend to focus on the probabilities – and with CHPT stock, the odds look pretty good right about now.
An Electric Deal
If there’s anything that has the “power” (sorry, couldn’t help myself), to spark a bull market in EV-related stocks, it’s the infrastructure bill that’s currently working its way through the U.S. government.
We’re not just talking about old-school infrastructure anymore. Sure, the government wants to build roads and bridges, but modern infrastructure means much more than that.
On August 4, U.S. senators reportedly managed to agree on something – a miracle in itself.
More specifically, Senate negotiators have reached a compromise on an infrastructure package which would include $15 billion to boost EV charging stations as well as electric buses and other transit.
Now, be advised that this is currently a bill, not a law. There’s no guarantee of its passage.
However, if it gets to President Joseph Biden’s desk, it’s hard to imagine him not signing it into law.
A Big Buy in Europe
Meanwhile, ChargePoint just made a multimillion-dollar investment intended to expand the company’s foothold in the European market.
It’s more of a multimillion-euro investment, to be clear. ChargePoint has reportedly agreed to acquire operating software firm has.to.be for 250 million euros, equivalent to $295 million.
You might not be familiar with has.to.be, but automotive giant Volkswagen (VWAGY) certainly is, owning a minority stake in the company.
The vast European reach of has.to.be — its software manages more than 40,000 charging points on the continent, with access to 250,000 via roaming agreements — makes this acquisition no small feat for ChargePoint.
The price is substantial, but ChargePoint CEO Pasquale Romano explained how his company will gain value from this deal.
“As an established leader in North America, our continued investment in Europe is critical to our stated growth strategy. … Our combined assets should position us to accelerate our leadership as electrification continues to take hold across continents,” said Romano.
Wall Street Weighs in
According to TipRanks’ analyst rating consensus, CHPT is a Strong Buy, based on seven Buy ratings and one Hold rating. The average CHPT price target is $35.75, implying 50.2% upside potential.
You can invest in ChargePoint because you like the has.to.be deal. Or, you might be enthused about the infrastructure bill’s potentially positive impact on ChargePoint.
There are a number of compelling reasons to consider CHPT stock today – and now that it’s sitting in the buy zone, there’s no better time to get involved.
Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.