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Ready to charge up your EV product portfolio? Your timing is perfect, because shares of ChargePoint Inc. (CHPT) are priced for a buy.
If there’s any point in history to consider alternative energy stocks, this is it. Yet, you don’t have to bet on the success of any particular EV company to win the investing game.
Instead, you can wager on a company which provides vehicle charging solutions that different cars can use. Let’s delve into the stock’s price action right now. (See ChargePoint's stock charts on TipRanks)
A Quick Look at CHPT Stock
A few words of caution: CHPT stock is a fast mover, to say the least. On August 5, 2021, the stock moved up 6% to breach $24, and that wasn’t a particularly unusual day for ChargePoint.
The point is that this stock is only appropriate for small position sizes. Please don’t load up on ChargePoint stock, even if you believe in the company’s future.
The next thing to know is that on a 12-month trailing basis, ChargePoint has negative earnings of $6.47 per share. That's not a favorable number for a $24 stock.
In addition, ChargePoint has a quarterly earnings release coming up soon. That could change the CHPT share price drastically, so it’s perfectly OK to wait until that event has passed before staking a position.
All of that having been said, it’s nice to know that CHPT stock is trading at a favorable price point for prospective investors.
The stock has come down to the low $20s not just once, but on four separate occasions recently: in March, April, May, and August.
That’s a power quartet of support points, and they aren’t hardwood floors. The share price could break down below $20 at any given moment.
Still, informed traders tend to focus on the probabilities – and with CHPT stock, the odds look pretty good right about now.
An Electric Deal
If there’s anything that has the “power” (sorry, couldn’t help myself), to spark a bull market in EV-related stocks, it’s the infrastructure bill that’s currently working its way through the U.S. government.
We’re not just talking about old-school infrastructure anymore. Sure, the government wants to build roads and bridges, but modern infrastructure means much more than that.
On August 4, U.S. senators reportedly managed to agree on something – a miracle in itself.
More specifically, Senate negotiators have reached a compromise on an infrastructure package which would include $15 billion to boost EV charging stations as well as electric buses and other transit.
Now, be advised that this is currently a bill, not a law. There’s no guarantee of its passage.