Top EV Stocks to Consider in February 2023

Here are two of the best Canadian EV stocks you can buy right now to hold for the long term.

| More on:
Car, EV, electric vehicle

Image source: Getty Images

After witnessing a sharp selloff last year, the Canadian stock market started 2023 on a strong note with renewed buying in many growth stocks. As a result, the TSX Composite Index has risen by 6.8% on a year-to-date basis. While this year’s rally has helped many beaten-down stocks recover sharply so far, some of them still look undervalued based on their long-term fundamental growth outlook.

In this article, I’ll highlight two of such rallying electric vehicle (EV) linked stocks that investors can buy on the Toronto Stock Exchange in February 2023 to hold for the long term.

My EV stock pick in 2023

In the last few years, the shares of most electric vehicle makers have already seen a massive rally, making them look overvalued. This is one of the key reasons why you may want to consider investing in other EV-linked stocks instead, like electric mobility technology companies and EV battery suppliers, to benefit from the consistently growing demand for EVs.

Considering that, Lithium Americas (TSX:LAC) could be an attractive EV battery stock to invest in right now. This Vancouver-headquartered resource company is focused on developing its lithium assets in the United States and Argentina. It currently has a market cap of $ 4.3 billion, as its stock currently trades at $32.15 per share with 25.2% year-to-date gains.

At the end of January 2023, the American auto giant General Motors committed to make a US$650 million equity investment in Lithium Americas. This investment will help the Canadian company develop its Nevada-based Thacker Pass mine. In return, GM will receive exclusive access to the mine’s phase one production. According to LAC’s estimates, the extracted and processed lithium from the Thacker Pass mine can support the production of up to one million EVs every year.

Overall, growing demand and strong lithium prices can help LAC become a highly profitable company in the coming years and help its stock soar further.

And another great EV stock to consider this year

On the electric mobility technology front, BlackBerry (TSX:BB) could be a great Canadian stock to consider in 2023. The Waterloo-based software firm has a market cap of $3.2 billion at the moment, as its stock trades at $ 5.58 per share with 26.5% year-to-date gains.

In the last few years, BlackBerry has speeded up its efforts to develop advanced machine learning and artificial intelligence-based technological solutions for futuristic mobility. For example, it has been developing intelligent vehicle data called IVY, which will help automakers access real-time vehicle sensor data to provide better features and functionality to consumers. As such advanced technological solutions are likely to play a key role in futuristic electric mobility, the growing popularity of the IVY platform can help BlackBerry accelerate its financial growth trends in the coming years.

Despite its improving fundamental outlook, BB stock hasn’t seen much appreciation lately. In fact, it tanked nearly 63% last year amid the tech sector-wide selloff, making it look undervalued to buy for the long term. While this EV stock has already recovered by more than 26% in 2023, it still has seen about 38% losses in the last year.

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.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.   

More on Stocks for Beginners

sale discount best price
Stocks for Beginners

Time to Pounce: 1 Phenomenal TSX Stock That Hasn’t Been This Cheap in a While 

Buying the dip of a phenomenal cyclical stock could generate fantastic returns. Here is a cheap TSX stock in its…

Read more »

financial freedom sign
Stocks for Beginners

Could This Undervalued Stock Make You a Millionaire One Day? 

The TSX has good millionaire-maker stocks if you wait. This futuristic stock might look undervalued once you see its growth…

Read more »

Aerial view of a wind farm
Energy Stocks

Brookfield Renewable Stock Climbs Higher: Time to Buy?

Brookfield Renewable stock (TSX:BEP.UN) continues to climb, but remains below the $40 mark. But that share price looks in view.

Read more »

Automated vehicles
Stocks for Beginners

Why Shares of Boyd Stock Flew Higher This Week

Boyd stock (TSX:BYD) has been rising higher on the back of improving credit and higher analyst ratings, so it could…

Read more »

Woman has an idea
Stocks for Beginners

Hot Stocks for a Hot Month: Best TSX Stocks to Buy in June 2024

As summer approaches and interest rates decline, you might want to consider adding these two hot TSX stocks to your…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Stocks for Beginners

How to Turn Your TFSA Into a Gold Mine Starting With $10,000 

What is the worth of $10,000? If you spend it today, it is worth $10,000. However, if you invest it…

Read more »

Target. Stand out from the crowd
Stocks for Beginners

2 Stocks Billionaires Are Buying Again and Again

Billionaire investors know what they're doing, and so can you by investing in these two top stocks right now!

Read more »

Business people standing near houses models
Dividend Stocks

This 8.1% Dividend Stock Pays Cash Every Month

This dividend stock has a strong history of dividend payments and growth, but offers even more for long-term investors.

Read more »