Magna (MG) and Lion Electric (LEV): 2 TSX EV stocks to buy in March

Published on March 02, 2022 07:45 AM EST

Magna (MG) and Lion Electric (LEV): 2 TSX EV stocks to buy in March — Image source: © 2022 Kalkine Media Inc

Highlights

Magna International (TSX: MG) and Lion Electric Company (TSX: LEV) are drawing attention amid the global economic fallout triggered by the Russia-Ukraine war, with energy prices skyrocketing.

EV companies have faced pandemic challenges and chip crunch, which impacted their production in recent years.

However, some experts believe that the EV space has significant growth potential and could play an essential role in the automobile industry in future years.

Magna International (TSX: MG) and Lion Electric Company (TSX: LEV) are drawing attention amid the global economic fallout triggered by the Russia-Ukraine war, with energy prices skyrocketing.

EV companies have faced pandemic challenges and chip crunch, which impacted their production in recent years. However, some experts believe that the EV space has significant growth potential and could play an essential role in the automobile industry in future years.

So, let us glance at the two TSX EV stocks.

Magna International Inc (TSX: MG)

Magna International, on February 22, said that it has agreed to assemble seats for trucks and SUVs under a joint venture (JV) deal with Michigan-headquartered auto supplier LAN Manufacturing. Magna said that it will own a 49 per cent interest in this JV.

The Aurora-based EV maker saw its 2021 sales reach US$ 36.2 billion, up by 11 per cent from fiscal year 2020. The EV company also approximately doubled its net profit to US$ 1.51 billion in fiscal 2021 against US$ 757 million a year ago.

Magna stocks, however, have plunged by over 20 per cent in the past one year. The EV stock closed at US$ 86.74 apiece on Tuesday, March 1, with a trading volume of 2.4 million shares.

Also read: JOY, FYHD, IPO, KIP & TIC: 5 Canadian penny stocks to buy in March

Lion Electric Company (TSX: LEV)

Lion Electric increased its revenue to US$ 22.9 million in Q4 FY2021, up by US$ 9.4 million year-over-year (YoY). Its fourth-quarter net income considerably increased to US$ 28.4 million in 2021 compared to a net loss of US$ 53 million a year ago.

Stocks of Lion Electric spiked by over five per cent in the last one week. LEV stock closed at US$ 10.28 apiece on Tuesday.

Also read: Toronto-Dominion (TD) to buy First Horizon (FHN). Bank stocks to bag?

Bottomline

In addition to rising energy prices, climate change actions can also bolster investors’ interest in EV stocks. However, it is necessary to carefully investigate a company’s fundamentals and growth potential before resting your money in any stock.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

Kajal Jain

Author

Kajal Jain - Analyst
618 Posts
Kajal is a commerce graduate with expertise in the financial corporate sector. At Kalkine, she writes on Canadian equities and markets. In her free time, she enjoys music and gardening and likes to travel....
Shreya Biswas

Editor

Shreya Biswas - Multimedia Journalist
408 Posts
Shreya Biswas is a multimedia journalist with a degree from the Asian College of Journalism. Previously a literature student-turned-political reporter, she now writes on market trends at Kalkine Media. When not chasing deadlines, she enjoys bloggin...

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.