2 Canadian Stocks to Buy During EV Boom

Magna International and BlackBerry could be excellent buying opportunities amid the electric vehicle boom.

| More on:
Car, EV, electric vehicle

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

With climate change becoming an increasingly worrying problem, people are choosing to go greener. The recent trend towards a more eco-friendly stance on life is seeing people shift towards electric vehicles (EV) to play their role in combating rising pollution levels. Fast & Factor is estimating that the EV market will grow at an enormous 22% CAGR over the next six years to hit the $700 billion mark by 2026.

I will discuss two TSX stocks that could make investors wealthier by benefitting from the secular shift towards electric vehicles.


BlackBerry (TSX:BB)(NYSE:BB) lost out to several other manufacturers in its bid to maintain dominance in the smartphone market and moved away from the limelight. However, it does not mean that BB has faded into oblivion. The company could be an excellent stock pick for investors seeking exposure to companies that might benefit from the EV boom.

BB is focusing on improving the technology for electric vehicles, connected cars, and smart mobility. The company has been busy forming partnerships with EV companies like Canoo and Arrival to provide its operating system that secures EV’s autonomous driving features.

The company expanded its existing partnership with Chinese giant Baidu, allowing the company’s HD maps to run on BlackBerry’s QNX operating system. The new agreement could help global EV manufacturers expand their reach to China.

BB has also partnered with Amazon Web Services to develop and market its Intelligent Vehicle Data Platform called IVY. The platform would help manufacturers securely read vehicle sensor data and provide in-vehicle services to enhance driver and passenger experiences.

Magna International

Magna International (TSX:MG)(NYSE:MGA) is my second pick among the two Canadian stocks to buy during the EV boom. It is the third-largest auto component manufacturer worldwide. The company formed a joint venture with Beijing Electric Vehicle Company to produce EVs in 2018. Magna International’s management recently announced that the joint venture would soon launch its first of the four full EV variants.

The company also worked with LG Electronics to create a joint venture to manufacture e-motors, inverters, and onboard chargers to capitalize on the growing EV market.

Magna International also has a wide range of products that will support the shift towards EVs. The company’s management predicts that half of its production units by 2023 would be dedicated to electric vehicles.

Magna International recently reported impressive earnings for its fourth quarter in 2020, beating the top-line and bottom-line expectations from analysts. The company’s sales increased 12.5% year over year, and Magna International more than doubled its earnings per share. MG’s management is looking forward to a promising year for the company through its 2021 guidance.

Foolish takeaway

Investing directly in EV manufacturing companies is not the only way you can capitalize on the industry’s boom. With several tech giants entering the EV market, I believe that Magna International and BlackBerry could be excellent buying opportunities to become a wealthier investor as the industry grows.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Adam Othman has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and Baidu. Tom Gardner owns shares of Baidu. The Motley Fool owns shares of and recommends Amazon and Baidu. The Motley Fool recommends BlackBerry, BlackBerry, and Magna Int’l and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

More on Dividend Stocks

A close up image of Canadian $20 Dollar bills
Dividend Stocks

3 Top Dividend Stocks to Buy Under $20

Given their stable cash flows and high dividend yields, these three under-$20 stocks could boost your passive income.

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Dividend Stocks to Buy During Recession to Lock In a 6% Yield

Make the most of the recession with dividend investing. You can buy stocks for a discount and lock in higher…

Read more »

Dividend Stocks

Put TFSA Cash to Work: Earn a Tax-Free Yield of at Least 5%

By investing your TFSA cash in these stocks, you can earn a reliable and high yield of more than 5%.

Read more »

edit Sale sign, value, discount
Dividend Stocks

3 Dividend Stocks That Are Dirt Cheap Right Now

These dividend stocks remain dirt cheap for investors to consider picking up, with plenty of room for growth in essential…

Read more »

grow dividends
Dividend Stocks

Economists: 100% Chance of a Super Rate Hike in 9 Days

The worries of homebuyers and homeowners will compound further if the Bank of Canada pushes through a super rate hike…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

RRSP Wealth: 2 Top TSX Dividend Stocks to Buy for Total Returns

These TSX dividend stocks look cheap right now and offer RRSP investors at shot at attractive total returns.

Read more »

Dividend Stocks

This Stable, Undervalued REIT Offers Some of the Highest Passive Income

If you want stable passive income that sets you up for long-term growth, this is the top REIT to consider…

Read more »

Happy retirement
Dividend Stocks

Happy Retirement: Do 1 Thing 1st, Then Go All Out on Your TFSA

Canadians using their TFSAs to save for the future need only one foolproof plan to ensure a happy retirement.

Read more »