5 Stocks To Crush The Market In 2018 As EV Race Heats Up

Beneficiaries of EV Boom

Although, all automakers will eventually have to join the EV race in the future, a few have already taken some serious steps toward this goal. In fact, from automotive manufacturers to chip makers to battery manufacturers, there are different types of companies which are likely to gain from this EV boom.

According to a report by Global Equity and Credit Research, over the next five years, demand for EVs and electric storage systems (ESS) is anticipated to grow at an annual compound rate of 20% and 10%, respectively. Lithium, aluminum, cobalt, graphite, nickel and copper are most likely to gain from this rising demand for batteries.

Stocks to Consider

We now zero in on five stocks, not only from the auto sector but also from other sectors, which are likely to gain from this optimism. We pick stocks with a market cap of more than $1 billion and a Zacks Rank of 1 or 2.

Japanese automaker Toyota is taking big strides on the EV front. With a market capitalization of $185.8 billion, the company plans to sell 5.5 million electrified vehicles by 2030, for which it is collaborating with a number of companies to develop batteries.

Additionally, by 2025, it has plans of selling dedicated electrified models or vehicles with an electrified version. Toyota is also focusing on battery reuse and recycling, for which it is promoting the usage of plug-in vehicle charging and hydrogen-refueling stations. Presently, Toyota sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here. Toyota has a long-term growth rate of 6.2%. Shares of the company have gained 8.7% year to date. (Looking for the Best Stocks for 2018? Be among the first to see our Top Ten Stocks for 2018 portfolio here)

Volvo, the Gothenburg, Sweden-based manufacturer of trucks, buses, construction equipment, has announced that all its vehicles launched post 2019 will be either electric or hybrid. Beginning 2019, the carmaker will only manufacture three types of vehicles — pure-electric, plug-in hybrids, and so-called mild hybrids. The mild hybrid category will combine a large battery with a small petrol engine.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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