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.
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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.
