As climate change is becoming an increasingly worrying problem, many countries have shifted their focus to building a green and sustainable economy. In the light of this development, it might be a good time to explore the stocks of electric vehicle (EVs) companies, such as Ford Motor Company (NYSE:F, F:US), NFI Group Inc (TSX:NFI) and Magna International Inc. (TSX:MG).
Let’s take a look at these three EV stocks that could likely bring you gains in the future.
Ford Motor Company (NYSE:F, F:US)
On Wednesday, May 19, Ford Motor Company revealed an all-electric version of its popular pickup truck, F-150 Lightning. The move represents a huge strategic bet on the rise of the EV industry as nearly every rival automaker is coming up with an electric car model.
Since Ford pickup trucks are quite popular among the masses in North America, chances are high that Fords stock might be impacted in future as the company further explores the EV sector.
The automaker's market cap is about C$ 47.5 billion and its price-to-earnings (P/E) ratio is 12.3.
Ford stock surged by 128 per cent in the past year and grew by 37.7 per cent year-to-date (YTD). The shares closed at US$ 12.11 apiece on Wednesday, down 11 per cent from a 52-week high of US$ 13.62 (March 15, 2021).
In April, the company set an all-time high monthly sales record under the Ford electrified vehicles segment. The sales were up by 262 per cent year-over-year (YoY) as it sold 1,951 units of Mustang Mach-E and 3,365 units of F-150 PowerBoost.
In the first quarter of 2021, Ford's revenue increased to US$ 36.2 billion and produced a net income of US$ 3.3 billion.
NFI Group Inc (TSX:NFI)
Winnipeg-based automobile maker NFI Group focuses on zero-emission mobility, manufacturing coaches and buses. This month, on May 13, it unveiled a new zero-emission commuter coach.
NFI's debt-to-equity (D/E) ratio sits at 1.4 and it pays a quarterly dividend of C$ 0.212.
In Q1 2021, NFI Group posted sales of US$ 574 million, of which 10 per cent was from electric buses. The company expects to clock a total revenue of US$ 2.9 billion in 2021.
Surpassing the TSX 300 Composite Index, NFI stock grew by five per cent this year. It swelled by about 70 per cent in the past year and its last closing price was C$ 25.33 on Wednesday.
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Magna International Inc (TSX:MG)
Canadian auto parts manufacturer Magna International is famously rumoured to be making the much-awaited 'Apple Car'. Its stock has been rallying for the past few months and an uptrend is likely to continue this year.
MG stock’s three-month growth is 17 per cent and it soared by 117 per cent in the past year. The scrips closed at C$ 116 on Wednesday, 117 per cent higher than a 52-week low of C$ 53.28 (May 19, 2020).
Magna International offers a 9.8 per cent return on equity (ROE) and distributes a quarterly dividend of US$ 0.43. In Q1 FY21, its sales increased by 18 per cent YoY and amounted to US$ 10.2 billion.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.