The demand for electric vehicles (EVs) has remained largely stable in the last few years, despite short-term weakness in consumer spending due mainly to high interest rates. As people around the world continue to be more conscious of the negative impact of fossil fuel-powered vehicles on the environment, the demand for EVs is likely to surge further in the next decade.
After going through a downward correction in the last year, some Canadian EV stocks look very attractive in 2024 based on their growth outlook, presenting attractive buying opportunities for investors. For beginners in the stock market who want to invest for the long term, these stocks offer a chance to benefit from the upcoming EV revolution. In this article, I’ll highlight two of the best Canadian EV-linked stocks you can buy in 2024 and hold for the long term.
Magna International (TSX:MG) is an Aurora-headquartered firm with a market cap of $21.7 billion, as its stock trades at $75.98 per share after witnessing a 7.3% pullback in the last year. At the current market price, MG stock offers a decent annualized dividend yield of 3.3% and distributes its dividend payouts every quarter.
It’s a well-known global automotive supplier that focuses on contract manufacturing of vehicle parts for several large automakers. In recent years, Magna’s focus on developing electric vehicle platforms and autonomous vehicle solutions has increased.
Even as macroeconomic challenges continued to affect several automotive companies across the globe last year, Magna’s financials showcased notable improvement on a YoY (year-over-year) basis. In the first three quarters of 2023, the company’s total revenue rose 14.4% YoY to US$32.3 billion with the help of an upward trend in global light vehicle production. Magna’s continued focus on operational efficiencies and cost savings also help the company achieve a solid 28% YoY increase in its adjusted quarterly earnings to US$4.07 per share.
Moreover, Magna’s high-voltage electrified products, which include a range of innovative solutions for EVs, position it as a strong long-term investment option in the EV sector in 2024.
In recent years, the Waterloo-based tech firm BlackBerry (TSX:BB) has also raised its bets on the upcoming EV and autonomous vehicle revolution, making it another top Canadian EV-related stock to consider in 2024. BB stock currently has a market cap of $2.7 billion as it trades at $4.60 per share after declining by more than 6% in the last year.
While BlackBerry currently generates most of its revenue from its enterprise cybersecurity solutions segment, its growing offering of technological solutions for futuristic mobility, including EVs, can help its IoT (Internet of Things) segment financially grow at an exponential rate in the years to come.
The company’s QNX operating system is already deployed in well over 200 million vehicles across the globe. With innovative technological solutions, such as the BlackBerry IVY intelligent vehicle data platform, the company is poised to significantly expand its automotive customer base in the years to come. Given these positive factors, buying BlackBerry stock during a dip in 2024 and holding it for the long term could be a great idea.