Tesla's delivery numbers in the first quarter clarified whether the demand for electric vehicles would increase and reach critical mass. It has.
The question for investors now is how best to handle the long-term wave.
Tesla Inc. shares
rose sharply last year, but in 2021 the volatility was painful for short-term investors whose timing was not optimal. Here is a price chart from the end of 2019:
That's a nice chart, especially if you've been in stock all along. However, Tesla's shares were down 27% by April 1 from the January 25 intraday high. On April 5, shares rose 4% after the company reported shipping 184,800 electric vehicles in the first quarter.
Tesla is an expensive stock. Among analysts surveyed by FactSet, the stock trades at 147.5 times the consensus earnings estimate for the next 12 months. Among those 35 analysts, less than a third of Tesla is a “buy” or equivalent, and their consensus-based 12-month price target of $ 658.26 is slightly below what it closed at on April 1.
Tesla's biggest competitor in the US EV sector is likely to be General Motors Co.
and Ford Motor Co.
based on the announced plans of the companies.
But there are many other ways to play this long-term secular trend. Semiconductor manufacturers will continue to benefit from the growth of electric vehicles and manufacturers of all types of components. Here is an up-to-date screen with semiconductor inventory.
To create a broader list of EVs and related stock games that could have significant benefits, we've first compiled a list of stocks held by one or more of these ETFs:
We looked at the holdings of three ETFs:
SPDR S & P Kensho Smart Mobility ETF
– 59 shares, largest holding: AgEagle Ariel Systems Inc.
Global X Autonomous & Electric Vehicles ETF
– 77 shares, largest holding: Alphabet Inc.
iShares Self-Propelled EV & Tech ETF
—101 shares, largest holding: Intel Corp.
Adding the three portfolios and removing duplicates produced a list of 175 stocks, 76 of which were listed in the US.
Of these 175 stocks, 111 are covered by at least 10 analysts. It is good to consider a large number of opinions – if a company is not fully covered by the brokerage industry, it may be overlooked by institutional investors (or paid by the few analysts who cover it).
Among the reduced list of 111 stocks are the 20 with more than two-thirds buy or equivalent ratings and the implied upside potential for the next 12 months:
The share prices and target prices in the table are given in the local currencies in which the shares or American depository receipts are listed.
As always, this type of list is just a start – you should do your own research before investing in anything. Do a ticker search at the top right of the MarketWatch page for more information about a company, including business profiles, charts, pricing ratios, financials and reporting.
Plug Power Inc.
is the stock with the most aggressive price target. Analysts expect an increase of 75% for the next 12 months. The company offers hydrogen fuel cell services.
Second on the list is Baidu Inc.
Analysts expect an increase of 59%. The company works with Geely Automobile Holdings Ltd. together.
from Hong Kong to develop electric vehicles.
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