EVGO's $10 level could be a springboard in 2022
Every day for the next week, we're going to highlight one of Schaeffer's top seven picks for 2022. Yesterday we covered Eaton (ETN), today we look at a stock potentially integral to the future of automobiles. To access the entirety of the 2022 report, click here.
Electric vehicle (EV) charging concern EVgo Inc (NASDAQ:EVGO) is a bullish play on widespread EV infrastructure in 2022. The company is already in 35 states, and could accelerate its presence next year, as it's the only charging company that operates 100% on renewable energy. This makes EVGO attractive to environmental, social and governance (ESG) funds, which continue to see big flows.
EVgo recently completed the acquisition of Recargo, the company that owns Plug Share, which is a popular app for finding charging stations. It was polled that seven out of 10 EV owners in the U.S. have downloaded the app. The purchase meshes with EVgo's existing businesses, while also making it a major player in the plug sharing market, given its recently developed payment system for it. The company's valuation is extreme, but there are massive tailwinds right now. The newly passed infrastructure bill resulted in expanded partnerships with General Motors (GM) and Uber Technologies (UBER), as the charging network builds out.
The above news spurred a big move in November. While the shares have since consolidated, they remain near the $10 level, which could serve as support going forward. A short squeeze is certainly in play, too, considering 15.1% of EVGO's total available float is sold short.
Schaeffer's Investment Research was built from scratch on Bernie Schaeffer's vision of providing accessible professional-grade trading information to retail traders. This remains our mission today, 40 years later. Bernie --and the Schaeffer's team -- has never been one for swinging for base hits. We are always seeking the next grand slam -- in business and in trading. Options are incredibly attractive to traders with this high risk and high reward mentality. Profits are literally uncapped, while your downside risk is limited to your initial investment.
Thank you for joining us on this journey within the options industry, and we look forward to seeing you as we continue to trade. We hope you enjoy one of our carefully chosen stock picks from our team of top traders.