Chart Spotlight: ChargePoint Holdings Inc. (CHPT)

With demand for electric vehicles on the run, investors may want to keep an eye on charging stocks, like ChargePoint Holdings (CHPT).

Remember, not only do global leaders want millions of EVs on the road, California is about to prohibit the sale of gas-powered cars.

“The rule, issued by the California Air Resources Board, will require that 100 percent of all new cars sold in the state by 2035 be free of the fossil fuel emissions chiefly responsible for warming the planet, up from 12 percent today. It sets interim targets requiring that 35 percent of new passenger vehicles sold in the state by 2026 produce zero emissions. That would climb to 68 percent by 2030,” according to The New York Times.

For that to become a reality, we need EV charging stations – lots of them.

In fact, the Biden Administration already announced that all 50 U.S. states, Washington, D.C., and Puerto Rico have all submitted plans for a national EV charging network.

“These plans are required to unlock the first round of the $5 billion of Bipartisan Infrastructure Law formula funding available over 5 years to help states accelerate the important work of building out the national EV charging network and making electric vehicle charging accessible to all Americans,” according to the U.S. Department of Transportation.

ChargePoint Holdings Stock Technically Oversold

It's all part of the reason why oversold shares of CHPT are starting to pivot higher. All after pulling back from about $19 to $14 thanks to a broad market pullback. Even better, the stock is oversold on Williams’ %R, Fast Stochastics, and RSI.

CHPT Chart With Trade Triangles

Source: MarketClub

Fundamentally, CHPT is just as solid. In its fourth quarter, the company posted a 17-cent loss, which was a penny shy of expectations. Sales were up to $80.7 million, which was far better than expectations for $75.9 million. It was also better than the company’s own guidance for $78 million for the quarter.

Better, “ChargePoint delivered another outstanding quarter…. advancing our technology leadership in our commercial, fleet and residential verticals,” said CEO Pasquale Romano in the company’s news release. “We had numerous successes in our first year as a publicly traded company, including a 65% year over year increase in annual revenue, two strategic acquisitions, expansion of our activated [charging] port count by over 60%.”

Again, with the EV boom only accelerating, oversold shares of CHPT could race higher.

CHPT last traded at $15.33 a share, and could potentially test $19 again, near-term.

Ian Cooper Contributor

The above analysis of ChargePoint Holdings (CHPT) was provided by financial writer Ian Cooper. Ian Cooper is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Ian Cooper expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.