If you had invested in Tesla (NASDAQ:TSLA) back in, say, 2013, it’d be fair for you to think this company was going nowhere but up.
And, in fact, for a while that’s pretty much all it was doing. From its high around $180 in 2013, the company rose to almost $385 per share back in 2017, and since then has pretty much plummeted all the way down to the $180 range yet again. Some analysts are predicting it to fall even further, while others think this company is due for a comeback.
But if you’re an investor that wants a strong stock that will remain stable, you don’t have to look to something like Tesla for quick growth. Sure, its electric vehicles have changed the game, but there are a number of companies I would invest that offer stable share growth before touching Tesla. Today, I’ll be looking at Lithium Americas (TSX:LAC)(NYSE:LAC) and NFI Group (TSX:NFI) as some options for your portfolio.
If you’re going to make electric vehicles a thing of the present, not just the future, there’s one thing you desperately need: lithium. And that means Lithium Americas is the stock you want in your portfolio when the rest of the world goes green.
With the stock trading at the time of writing at $5.69, analysts believe there isn’t anywhere else to go but up. Some analysts predict that in the next 12 months, the stock price could shoot up to $12 per share — a price not seen since 2017.
And Lithium Americas is certainly on track to become a powerhouse of activity. The company recently partnered with Ganfeng Lithium over a joint venture in Argentina. The project should hopefully generate $233 million a year in earnings before interest, tax, depreciation, and amortization.
The company is hoping for some serious growth in the near future as more and more electric vehicles are introduced to the market. Given that there aren’t many lithium producers out there, this could seriously run up the price of lithium, proving that now is a solid time to buy this stock.
Another great option if you want a foot in the door on electric vehicles is the NFI Group. This company is currently in the process of manufacturing and developing electric-powered buses as they continue to gain popularity around the world.
The stock is trading at the time of writing at $33.20, and analysts believe that share price will reach $40 in the next 12 months. But that’s only the beginning. After all, it was only in April 2018 that the stock was in the $60 range.
What makes it a great buy right now is in fact its lower share price. The company has shifted its focus to electric, and that means sales have slumped as cities are slow to sign on. Revenue decreased by 2% to $567 million, and earnings decreased by 47% to $16.1 million for the first quarter.
While this stock might be more of a waiting game, it’s definitely a great time to buy while the share price is as low as it’s going to be. Over the next few decades, many cities have already stated they want only electric-powered buses on city streets by 2040. So, investors should see a steady increase in sales that will make this a perfect stock to buy and hold.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of Tesla. Tesla is a recommendation of Stock Advisor Canada.