The hunt for new investment opportunities in electric vehicle stocks heats up as EVs revolutionize the auto industry.
In this pursuit lie hidden gems that are likely to blow up in the stock market in the not-so-distant future. These under-the-radar bets are making significant advances, ramping up production, enhancing their technology, and improving their financial positioning.
Moreover, the EV market’s growth trajectory remains mighty impressive. In fact, analysts expect a whopping $906.7 billion in value by 2028. This bullish trend spotlights ripe investment opportunities set for long-term expansion. These standout hidden gems embody resilience and innovation, offering plenty of potential upside ahead.
Magna International (MGA)
It has been a busy few months for Canadian automotive parts manufacturer Magna International (NYSE:MGA). It recently partnered in the NorthStar innovation program with Telia Sweden and Ericsson. The plan aims to boost its vehicle-to-vehicle (V2V) and vehicle-to-everything (V2X) communication capabilities using a specialized private 5G network.
Adding to these, Magna’s unveiling of its innovative 800V eDrive system showcases its innovative spirit. Its lightweight, compact system boasts a distinct ability to rotate 90 degrees around the drive axis for effective integration.
Financially, Magna boasts a staggering revenue increase of 9.26% year-over-year (YOY) to $10.45 billion. The leap in diluted earnings-per-share (EPS) to 94 cents from 33 cents last year, coupled with $133 million paid in dividends, paints a picture of healthy financial health. TipRanks analysts are optimistic, projecting a moderate buy rating with a 13.22% upside potential, making it an attractive investment choice.
General Motors (GM)
General Motors (NYSE:GM), an auto industry titan, seems to be back on the comeback trail. Despite a $1 billion loss due to a United Auto Workers strike, GM’s resilience shines with a 10% stock price increase year-to-date (YTD). Now, the company is accelerating its push into the EV market, marking a strong comeback.
Moreover, GM recently hired Kurt Kelty, Tesla’s (NASDAQ:TSLA) former battery development leader. Kelty aims to leverage GM’s resources to revitalize its EV division. Moreover, it aims to reintroduce plug-in hybrid options as a bridge while the national charging infrastructure matures, further supported by Tesla’s Supercharger network expansion.
Financially, GM stands strong, with revenues at a whopping $43 billion. This surpasses expectations by $3.51 billion and EPS of $1.59, exceeding forecasts by 43 cents. GM’s Super Cruise network now spans 750,000 hands-free miles, the largest in North America, showcasing its undeniable progress. TipRanks analysts rate GM as a moderate buy with a 26.8% upside potential, highlighting confidence in GM’s potential.
Rivian Automotive (RIVN)
Rivian Automotive (NASDAQ:RIVN) is steering the EV industry toward sustainability with its latest collaboration with AT&T (NYSE:T), which is aimed at reducing CO2 emissions and enhancing vehicle connectivity. This partnership highlights RIVN’s innovative approach to pushing the boundaries of EV achievements.
Moreover, RIVN plans to open a flagship retail space in Laguna Beach, transforming a historic theater. This move highlights Rivian Automotive’s efforts towards unique customer experiences and its aim to integrate into communities. Additionally, RIVN is expanding its commercial EV lineup, planning multiple models while ramping up its productive capacity.
Financially, RIVN shines with Q4 revenue of $1.32 billion, marking a 99% increase YOY and surpassing expectations by $60 million. With 17,541 vehicles produced and 13,972 delivered, Rivian’s performance is solid. TipRanks analysts give RIVN a moderate buy rating, seeing a 95.6% upside potential. Therefore, this makes the stock a compelling investment opportunity.
On the date of publication, Muslim Farooque did not have (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