Why you should buy underrated EVgo as the EV market expands

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EVgo Inc. (NASDAQ: EVGO) is a company that invests in charging stations for electric vehicles. It exists to solve one of the problems that have been hindering fast growth in the EV market.

By creating a network of fast-charging ports in public spaces, the company becomes an enabler in the EV market.

While EVgo leads the way in creating fast-charging ports, it is rated as financially distressed. That is a common challenge for small growth companies in the early stages, and for EVgo it is about to change.

The company just partnered with JP Morgan Chase to develop EV charging stations across the company’s 50 business locations in the US. There are several similar deals for EVgo announced in the past few weeks.

Such deals will certainly help the company improve its cash flows. The greatest opportunity for the company, however, comes from the growing uptake of EVs.

EVgo is gathering momentum for price appreciation

Source – TradingView

Technical analysis points to bullish momentum. The lower-term 10-day moving average just crossed above the 50-day average. The 20-day moving average is at par with the 50-day. This analysis considers that the price will rise to consolidate at $15.

As news of revenue growth starts to trickle in, the stock will smash through the resistance level of $17.50 to find a new high.

Summary

EVgo is a promising growth stock. As the market for electric vehicles grows, the stock will continue gaining. The stock will mainly benefit the growth investor focused on the long-term.

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