2 hot Canadian EV stocks to buy & hold for next 10 years

Climate change threats have largely drawn peoples’ interest toward a fossil fuels-free and carbon neutral economy. With the electric vehicle (EV) space being an integral part of the goal, many investors have been motivated to explore the industry.

2 hot Canadian EV stocks to buy & hold for next 10 years

As on Friday, November 12, the S&P/TSX Renewable Energy and Clean Technology Index was up by about three per cent quarter-to-date, reflecting a continued interest.

On that note, let us have a quick look at two TSX-listed EV stocks.

Also read: 5 Canadian lithium stocks to buy as Quebec attracts EV makers

1.     Magna International Inc (TSX: MG)

Magna International Inc, headquartered in Aurora, Ontario, is an automotive supplier firm with operations in North America, Europe and China. Founded in 1957, Magna is known to provide mobility solutions and technologies such as electronic systems, powertrain, roof systems and other components.

On November 12, Magna International saw its stock close at C$ 108.48 apiece after climbing by more than two per cent. It also clocked a day high of C$ 109.7 during this session.

MG stock spiked by nearly five per cent in the last one week and climbed by more than 20 per cent on a year-to-date (YTD) basis. It delivered a return of almost 42 per cent over the past 12 months.

The Canadian automotive supplier recorded sales of US$ 7.9 billion in the third quarter of fiscal 2021, noting a decrease of 13 per cent year-over-year (YoY), which it said was due to reduced light vehicle production.

At the time of writing this, Magna International posted a price-to-earnings (P/E) ratio of 14.5 and a return on equity (ROE) of 15.83 per cent, while its  market capitalization stood at C$ 32.6 billion.

Magna is set to pay a quarterly dividend of US$ 0.43 per share on December 3 this year against an ex-dividend date of November 18.

2.     NFI Group Inc (TSX: NFI)

Based in Winnipeg, Manitoba, automaker NFI Group Inc offers electric mobility solutions and services worldwide. Its stock was valued at C$ 26.38 apiece on November 12, noting a daily growth of over three per cent.

NFI stock grew by about 12 per cent in the last 30 days. Although it plunged by more than 14 per cent in the past three months, it yielded a return of nearly 67 per cent over the past year.

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NFI reported a revenue of US$ 492 million in Q3 FY2021. Its adjusted EBITDA stood at US$ 31 million and its net loss amounted to US$ 0.22 per share in its latest quarter.

On the valuation side, its price-to-book (P/B) ratio stood at 1.89, while its earnings per share (EPS) was 0.24.

Also read: Is it the right time to invest in an electric vehicle?

Bottom line

Keeping climate change concerns in mind, many governments across the world set stronger emission reduction targets at the recently held COP26 event, which is likely to boost the demand for the electric cars further.

On the other hand, investors should research about a stock they are interested in and not blindly follow trends before making any investment decisions.