The Ultimate EV Stock to Buy With $1,000 Right Now

If you’re investing long-term in EV stocks, this company is already seeing massive growth and expects more to come in the next two years.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 30, 2024 3:30 pm EDT

So, you have $1,000 you want to invest long term. Well, the electric vehicle (EV) market is certainly a strong place to consider. While shares of EV stocks have surged and plunged, taking the opportunity to buy the dip is a strong move at this point.

EV stocks are certainly going to be a part of the future. Whether it’s the clean energy transition or the move towards fully automated cars, this area is a strong one. But there’s one company already seeing growth. And it’s one where investors can put their $1,000 to work right away.

Car, EV, electric vehicle — Image source: Getty Images

NFI stock

If you’re interested in EV stocks, I would certainly consider NFI Group (TSX: NFI) on the TSX today. The EV stock is a leading manufacturer of buses and mobility solutions, including electric buses, in North America.

NFI stock has been a pioneer in the development and adoption of electric buses. It offers several electric bus models, including battery-electric buses and fuel cell-electric buses, aimed at reducing emissions and improving sustainability in public transportation.

What’s more, NFI stock has a significant presence in North America, with its buses operating in numerous transit agencies and municipalities across the United States and Canada. The company also has a growing presence in international markets, particularly in the U.K. and Europe, through its ADL brand.

Growing momentum

These electric buses in particular have been a huge benefit to NFI stock over even just the last few quarters. To see this, let’s dig into the momentum that NFI stock has demonstrated over the last few quarters and the outlook for the next year.

During the third quarter, NFI stock reported revenue of US$710 million, with 1,051 equivalent units (EU) delivered. It also reported a net loss of US$40 million, though with a total backlog of 9,556 EUs. The company further updated its guidance for 2023 to between US$2.7 and US$2.8 billion in revenue.

By the fourth quarter, the company achieved US$792 million in revenue, with 1,227 EUs delivered, so an even larger increase. It also trimmed its net loss of US$2 million. As for its 2023 guidance, the company achieved US$2.7 billion in revenue, hitting its target.

Outlook

During the fourth quarter, the EV stock also announced its guidance for 2024. This included adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between US$240 and US$280 million. Furthermore, its 2025 target should reach US$350 million. So, was it on the right path in the first quarter?

The company came out with earnings at the beginning of May, and they started the year on a high. The stock saw revenue drop back slightly to US$723 million, with 1,127 EU delivered. Its backlog increased to 14,783, and its net loss increased as well to US$9 million. However, it reiterated all guidance for 2024 as well as its 2025 targets.

With an enormous backlog and even more growth due for 2024 and 2025, I would take this first quarter as the start of things to come. Shares surged after the results thanks to an increase in backlog and the promise of billions in additional revenue. So, if you’re looking for EV stocks that can put your shares to work, dig into NFI stock.