![]() ![]() While shares trading at a forward price to sales ratio of 11x and forward P/E of 86x may represent a sticker shock to some, we view the growth momentum including the market consensus for EPS to more than double over the next five years as justifying the current multiples. Whether you own a Tesla, want to buy one or not, the reality is that the company has proven doubters wrong over the past decade and now stands as the undisputed benchmark for all other EV companies. We highlight 4 names we are bullish on and 3 we're leaving unplugged. That said, not all EV stocks are created equal or make for particularly attractive investments. Putting it all together we are bullish on EVs and several stocks that are well-positioned to capture these trends. Globally, governments are incentivizing "net-zero" initiatives and electric vehicles are a part of the solution. level of penetration to reach 30% by 203 0. Indeed, the momentum in EVs has been building over the last several years with the global share of battery electric vehicles and plug-in hybrids nearly doubling in 2021 to 8.3% from 4.2% in 2020. From there we believe the setup is also bullish for the electric vehicles segment that may end up getting a boost of demand with consumers seeking relief from gas prices at near-record levels ![]() While these serious market headwinds are expected to continue for the foreseeable future, the silver lining is that the current environment could end up accelerating trends towards clean energy and renewables as policymakers look for alternatives to fossil fuels. Surging energy prices are adding to what is already an elevated inflationary environment may pressure consumer spending going forward. Stocks have been under pressure over the last several months with volatility increasing amid the ongoing Russia-Ukraine crisis dominating headlines. ![]()
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