The renewable energy and electric vehicle (EV) industries have been gaining traction in recent years, and investors might be looking for opportunities to invest in these sectors. This article highlights three stocks, Rivian Automotive, Altus Power, and Livent, all trading under $25, that have the potential for substantial upside.
Rivian Automotive
Rivian Automotive, Inc. is a U.S.-based EV maker that is currently trading for around $24 a share. The company is ramping up production and cutting costs while offering unique offerings compared to other EV companies like Tesla and Volkswagen. Rivian’s EV pickup truck, the R1T, and SUV, the R1S, have received positive reviews for their design and functionality. Additionally, Rivian has a partnership with Amazon to bring electric delivery vehicles to the road, further expanding its market presence.
Global electric vehicle sales have been growing rapidly, with projections indicating that EVs could account for 50% of new car sales by 2035. Rivian’s revenue is projected to skyrocket in the coming years, reaching $6.82 billion in 2024. The stock has already seen significant growth in 2023 and is currently trading at a discount compared to Tesla.
Altus Power
Altus Power is an electrification company in the solar energy sector, trading around $6 a share. The company focuses on providing solar generation, energy storage, and charging infrastructure to commercial and industrial buildings. As the commercial real estate market increasingly adopts on-site solar energy, Altus Power is positioned for growth.
Altus Power’s stock has seen a 40% increase since May and is currently trading below its 52-week highs. The company is projected to see revenue growth of approximately 70% and 53% in the coming years. With positive estimates and “Strong Buys” from brokerage recommendations, Altus Power presents an attractive investment opportunity.
Livent
Livent is a high-quality finished lithium compound producer, which is crucial for rechargeable lithium-ion batteries used in EVs and other electronics. Despite possible boom and bust cycles, the demand for lithium is projected to exceed supply in the long run. Livent’s revenue is expected to climb 32% in 2023, boosting its earnings by 54%. The company’s stock has experienced volatility but is currently trading at a discount compared to its value and sector averages. The proposed merger between Livent and Allkem also presents potential opportunities for growth.
Investors interested in the renewable energy and EV sectors may consider these three stocks, as they offer potential upside at affordable prices. However, it is important to conduct further research and consider financial goals before making any investment decisions.
Sources: Zacks Investment Research
Definitions:
1. Electric vehicle (EV): A vehicle that is powered by an electric motor, using electricity stored in batteries or obtained from an external source through charging.
2. Solar energy: Energy derived from the sun’s radiation, which is converted into usable electricity through solar panels or other technologies.
3. Lithium-ion battery: A type of rechargeable battery commonly used in EVs and electronic devices, known for its high energy density and long lifespan.
Sources: Zacks Investment Research