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U.S. equities appear to be back in rally mode. The April CPI report is partially responsible. Headline inflation, from a month-over-month perspective, came in below estimates, while “core” inflation, which does not account for food and energy costs, was in line with what economists had been predicting. Most importantly, the inflation print represented the first cooling of prices in 6 months. This has sparked a general resurgence in U.S. equities prices.
Looking at the Nasdaq and S&P 500 indices, both are up on a quarter-to-date perspective. The Global X Autonomous & Electric Vehicles (NASDAQ:DRIV) has, of course, been slow to recover. High interest rates, waning consumer demand, intense competition has cut into the profits and stock prices of many public electric vehicle (EV) companies.
However, better-than-expected macroeconomic data could very well reverse this trend. Below are 3 EV stocks to buy before they surge.
BYD (BYDDY)
Source: shutterstock.com/Trygve Finkelsen
BYD (OTCMKTS:BYDDY) is a force to be reckoned with in the global EV space. Not only had the EV manufacturer been able to unseat Tesla (NASDAQ:TSLA) in terms of EV deliveries in December 2023, but BYD has also continued to grow sales and deliveries robustly in the first quarter of 2024. Recent April delivery numbers have also been uplifting. In particular, BYD sales increased 49% year-over-year to 312,048 deliveries in the month of April.
Despite great sales growth, the hypercompetitive environment of China’s EV market has taken a toll on BYD profits. As we saw in their first-quarter earnings print for fiscal year 2024, operating profits slipped more than analysts had predicted. Shares of the Chinese EV behemoth have risen just about 7% for the year as of the end of last Friday’s trading session. The stock trades at around 17.5x forward earnings, and as the macro environment becomes less volatile, BYD will be one of the stocks poised…
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