Top EV Stocks to Consider in February 2023

Here are two of the best Canadian EV stocks you can buy right now to hold for the long term.

| More on:
Car, EV, electric vehicle

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn moresdf

After witnessing a sharp selloff last year, the Canadian stock market started 2023 on a strong note with renewed buying in many growth stocks. As a result, the TSX Composite Index has risen by 6.8% on a year-to-date basis. While this year’s rally has helped many beaten-down stocks recover sharply so far, some of them still look undervalued based on their long-term fundamental growth outlook.

In this article, I’ll highlight two of such rallying electric vehicle (EV) linked stocks that investors can buy on the Toronto Stock Exchange in February 2023 to hold for the long term.

My EV stock pick in 2023

In the last few years, the shares of most electric vehicle makers have already seen a massive rally, making them look overvalued. This is one of the key reasons why you may want to consider investing in other EV-linked stocks instead, like electric mobility technology companies and EV battery suppliers, to benefit from the consistently growing demand for EVs.

Considering that, Lithium Americas (TSX:LAC) could be an attractive EV battery stock to invest in right now. This Vancouver-headquartered resource company is focused on developing its lithium assets in the United States and Argentina. It currently has a market cap of $ 4.3 billion, as its stock currently trades at $32.15 per share with 25.2% year-to-date gains.

At the end of January 2023, the American auto giant General Motors committed to make a US$650 million equity investment in Lithium Americas. This investment will help the Canadian company develop its Nevada-based Thacker Pass mine. In return, GM will receive exclusive access to the mine’s phase one production. According to LAC’s estimates, the extracted and processed lithium from the Thacker Pass mine can support the production of up to one million EVs every year.

Overall, growing demand and strong lithium prices can help LAC become a highly profitable company in the coming years and help its stock soar further.

And another great EV stock to consider this year

On the electric mobility technology front, BlackBerry (TSX:BB) could be a great Canadian stock to consider in 2023. The Waterloo-based software firm has a market cap of $3.2 billion at the moment, as its stock trades at $ 5.58 per share with 26.5% year-to-date gains.

In the last few years, BlackBerry has speeded up its efforts to develop advanced machine learning and artificial intelligence-based technological solutions for futuristic mobility. For example, it has been developing intelligent vehicle data called IVY, which will help automakers access real-time vehicle sensor data to provide better features and functionality to consumers. As such advanced technological solutions are likely to play a key role in futuristic electric mobility, the growing popularity of the IVY platform can help BlackBerry accelerate its financial growth trends in the coming years.

Despite its improving fundamental outlook, BB stock hasn’t seen much appreciation lately. In fact, it tanked nearly 63% last year amid the tech sector-wide selloff, making it look undervalued to buy for the long term. While this EV stock has already recovered by more than 26% in 2023, it still has seen about 38% losses in the last year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.   

More on Stocks for Beginners

A red umbrella stands higher than a crowd of black umbrellas.
Stocks for Beginners

Top Recession-Resilient TSX Stocks to Buy With $3,000

It's time to increase your exposure to defensives!

Read more »

An airplane on a runway
Stocks for Beginners

Will Bombardier’s Stock Price Keep Soaring in 2023?

Here are the top reasons why recent gains in Bombardier’s share prices could just be the start of a spectacular…

Read more »

Automated vehicles
Stocks for Beginners

Magna Stock: How High Could It Go in 2023?

Magna International could grow in 2023 as the electric vehicle market recovers. Could MG stock hit new highs?

Read more »

Man data analyze
Stocks for Beginners

3 Top Stocks to Buy Now in a Once-in-a-Decade Opportunity

The next decade could be absolutely insane for these three top stocks that offer growth in both the near and…

Read more »

Profit dial turned up to maximum
Stocks for Beginners

How TFSA and RRSP Investors Can Turn $20,000 Into $320,000 in 30 Years

Investing in the stock market and holding patiently over the long term is the key to success.

Read more »

tsx today
Stocks for Beginners

TSX Today: What to Watch for in Stocks on Tuesday, February 21

A minor recovery in oil and base metals prices could lift commodity-linked TSX stocks at the open today.

Read more »

Young adult woman walking up the stairs with sun sport background
Stocks for Beginners

New to Stocks? 5 Easy Tricks to Give You a Leg Up

New stock investors from all walks of life can improve their returns from applying some, if not all, of these…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Stocks for Beginners

2 Top TSX Stocks for TFSA Investors to Buy Now

If you have a long investment horizon, don't waste your TFSA on high-interest savings plans. Generate long-term wealth with these…

Read more »