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

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.