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3 Battery Stocks in Spotlight as the World Makes EV Shift
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It’s no secret that the automotive industry is undergoing a permanent shift toward electric vehicles (EVs). Climate concerns, stringent fuel-economy targets and advancements in technology are boosting the environment-friendly EV market. Major automakers, pure EV plays, and small as well as mid-size startups are actively focusing on the development of environment-friendly vehicles. The widespread adoption of e-mobility will have a trickle-down effect in the supply chain, making battery stocks more attractive than ever.
With longest-lasting, farthest-driving and affordable batteries being the key parameters of the race in the EV market, one can consider tapping this supercharged space with battery stocks like BYD. Co. (BYDDY - Free Report) , EnerSys (ENS - Free Report) and Panasonic Corp. .
Battery Market to Charge Up as EV Adoption Revs Up
Consumer enthusiasm has been a key to EV growth, as can be seen from the boom in sales. Around 4.2 million battery-powered EVs and plug-in hybrids were sold worldwide in the first half of 2022, rocketing 63% from the corresponding period of 2021.BloombergNEF forecasts EV vehicle sales to jump from 6.6 million units in 2021 to 20.6 million units in 2025. As more electric vehicles take to the road in the coming days, demand for batteries will only increase. Batteries are the most common element of green cars and will play the most important role in accelerating the EV revolution. Battery specifications are the cornerstone of an electric vehicle’s performance.
Per Polaris Market Research, the global EV battery market was valued at $50.12 billion in 2021 and is expected to witness a CAGR of 18.9% between 2022 and 2030. Currently, the most popular source of power in green vehicles is lithium-ion batteries. Per MarketsandMarkets Research, the global lithium-ion battery market is likely to record a CAGR of 13.1% between 2022 and 2031. Amid the upbeat scenario, investors should put battery-related stocks on their radar.
3 Stocks in Focus as Batteries Serve as the “Secret Sauce” for EVs
BYD: China-based BYD is principally engaged in the research, manufacture, and distribution of electric and hybrid vehicles as well as EV batteries. The company stands to benefit from robust demand for green vehicles and batteries in China. The firm’s rechargeable battery business provides lithium-ion and nickel batteries that are essential for the development of green vehicles. Solid execution capabilities and expansion efforts outside China, particularly in the European market, will further fuel the stock.
BYD currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for 2022 and 2023 earnings implies year-over-year growth of 342.4% and 32%, respectively. The consensus mark for the 2022 and 2023 bottom line has been upwardly revised by 46 and 34 cents over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
EnerSys: Headquartered in Pennsylvania, EnerSys manufactures and distributes batteries, serving various end markets. Battery brands of the firm include Odyssey, NexSys and PowerSafe among others. A solid product portfolio, continuous innovation and new product offerings are key strengths of EnerSys. The NorthStar acquisition has further boosted EnerSys’ prospects.
ENS currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for fiscal 2023 and 2024 earnings implies year-over-year growth of 7.2% and 26.3%, respectively. The consensus mark for fiscal 2023 and 2024 bottom line has been upwardly revised by 3 and 11 cents over the 60 days.
Panasonic: Panasonic is one of the key players in the development of next-generation lithium-ion batteries for green vehicles. Continuous research and cutting-edge technology have kept the company at the forefront of battery development. Its advanced lithium-ion battery tech offers improved energy density, lower costs and improved driving range. Partnerships with auto biggies like Tesla and Toyota are likely to boost the firm’s prospects. The company is well poised to supply EV batteries to all the major automakers that have unveiled ambitious targets to electrify their portfolio.
PCRFY currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for fiscal 2024 sales and earnings implies year-over-year growth of 4% and 24%, respectively. The consensus mark for fiscal 2024 bottom line has been upwardly revised by a penny over the past 60 days.
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3 Battery Stocks in Spotlight as the World Makes EV Shift
It’s no secret that the automotive industry is undergoing a permanent shift toward electric vehicles (EVs). Climate concerns, stringent fuel-economy targets and advancements in technology are boosting the environment-friendly EV market. Major automakers, pure EV plays, and small as well as mid-size startups are actively focusing on the development of environment-friendly vehicles. The widespread adoption of e-mobility will have a trickle-down effect in the supply chain, making battery stocks more attractive than ever.
With longest-lasting, farthest-driving and affordable batteries being the key parameters of the race in the EV market, one can consider tapping this supercharged space with battery stocks like BYD. Co. (BYDDY - Free Report) , EnerSys (ENS - Free Report) and Panasonic Corp. .
Battery Market to Charge Up as EV Adoption Revs Up
Consumer enthusiasm has been a key to EV growth, as can be seen from the boom in sales. Around 4.2 million battery-powered EVs and plug-in hybrids were sold worldwide in the first half of 2022, rocketing 63% from the corresponding period of 2021.BloombergNEF forecasts EV vehicle sales to jump from 6.6 million units in 2021 to 20.6 million units in 2025. As more electric vehicles take to the road in the coming days, demand for batteries will only increase. Batteries are the most common element of green cars and will play the most important role in accelerating the EV revolution. Battery specifications are the cornerstone of an electric vehicle’s performance.
Per Polaris Market Research, the global EV battery market was valued at $50.12 billion in 2021 and is expected to witness a CAGR of 18.9% between 2022 and 2030. Currently, the most popular source of power in green vehicles is lithium-ion batteries. Per MarketsandMarkets Research, the global lithium-ion battery market is likely to record a CAGR of 13.1% between 2022 and 2031. Amid the upbeat scenario, investors should put battery-related stocks on their radar.
3 Stocks in Focus as Batteries Serve as the “Secret Sauce” for EVs
BYD: China-based BYD is principally engaged in the research, manufacture, and distribution of electric and hybrid vehicles as well as EV batteries. The company stands to benefit from robust demand for green vehicles and batteries in China. The firm’s rechargeable battery business provides lithium-ion and nickel batteries that are essential for the development of green vehicles. Solid execution capabilities and expansion efforts outside China, particularly in the European market, will further fuel the stock.
BYD currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for 2022 and 2023 earnings implies year-over-year growth of 342.4% and 32%, respectively. The consensus mark for the 2022 and 2023 bottom line has been upwardly revised by 46 and 34 cents over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
EnerSys: Headquartered in Pennsylvania, EnerSys manufactures and distributes batteries, serving various end markets. Battery brands of the firm include Odyssey, NexSys and PowerSafe among others. A solid product portfolio, continuous innovation and new product offerings are key strengths of EnerSys. The NorthStar acquisition has further boosted EnerSys’ prospects.
ENS currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for fiscal 2023 and 2024 earnings implies year-over-year growth of 7.2% and 26.3%, respectively. The consensus mark for fiscal 2023 and 2024 bottom line has been upwardly revised by 3 and 11 cents over the 60 days.
Panasonic: Panasonic is one of the key players in the development of next-generation lithium-ion batteries for green vehicles. Continuous research and cutting-edge technology have kept the company at the forefront of battery development. Its advanced lithium-ion battery tech offers improved energy density, lower costs and improved driving range. Partnerships with auto biggies like Tesla and Toyota are likely to boost the firm’s prospects. The company is well poised to supply EV batteries to all the major automakers that have unveiled ambitious targets to electrify their portfolio.
PCRFY currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for fiscal 2024 sales and earnings implies year-over-year growth of 4% and 24%, respectively. The consensus mark for fiscal 2024 bottom line has been upwardly revised by a penny over the past 60 days.