This Little-Known Stock Has Serious Upside Potential
In today’s automotive industry, electric vehicles (EVs) are all the rage. Tesla Inc (NASDAQ:TSLA) already has a huge following thanks to its lineup of “Model S,” “Model X,” and “Model 3” electric cars. And many other automakers are coming out with their own fleet of contenders in the booming EV market.
Still, I want to point out that making electric cars is not the only way to capitalize on the fast-growing electric car business.
When more people start to buy EVs, more batteries will need to be charged. And right now, there seems to be a gap between the existing charging infrastructure and the charging infrastructure that’s needed to support the many more EVs expected to be roaming the streets in the future.
If someone can step in and address that infrastructure gap, they could find a very lucrative opportunity. And that’s why today I want to talk to you about Blink Charging Co (NASDAQ:BLNK).
Headquartered in Miami Beach, Florida, Blink is in the EV charging equipment and services business.
Since starting back in 2009, the company has grown to have more than 14,000 EV charging stations across the United States. Notably, the company owns the “Blink Network,” which monitors, tracks, and operates EV stations and all of their charging data. (Source: “Investor Presentation,” Blink Charging Co, last accessed September 25, 2019.)
With a share price of $2.64, BLNK stock is basically a penny stock. But the company is actually one of the leading players in America’s EV charging industry.
According to the company’s latest earnings report, Blink had a member base of more than 153,000 at the end of June. That’s up 23% from the same period last year. (Source: “Blink Charging Announces Second Quarter 2019 Financial Results,” Blink Charging Co, August 14, 2019.)
Now, you are probably wondering how the company makes money.
Well, Blink has three main revenue streams. First, it charges EV drivers to fuel their cars. Second, the company sells EV charging hardware. Third, it earns revenue by providing network connectivity and payment processing for its property partners.
If you take a look at the Blink Charging stock chart below, you’ll see that its shares had a rather choppy ride in the past year. However, no matter what the bears say, they cannot deny the fact that the company’s business is growing at a decent pace.
Consider this: in the second quarter of last year, Blink generated $142,839 in hardware sales. Fast forward one year and the company’s hardware sales have nearly doubled to $282,014 in the same quarter of 2019. (Source: Ibid.)
In its most recent quarter, BLNK also grew its network fee revenue by 36% year-over-year to $76,359.
At the company level, Blink Charging Co generated $715,828 in total revenue in the second quarter of 2019, marking a 15% improvement from the year-ago quarter.
Blink Charging Co (NASDAQ:BLNK) Stock Chart
Chart courtesy of StockCharts.com
Right now, Blink Charging Co’s revenue growth rates are already quite impressive. But keep in mind that a lot more EVs are expected to be on the road a few years from now, meaning we will likely see a surge in demand for EV charging services.
Because the company stands ready to capitalize on that demand, the low-priced Blink Charging stock could be worth a look for investors who want to get some exposure to the booming EV industry.