The recent eruption of geopolitical flashpoints and environmental anxieties forces a rethink regarding the future of transportation stocks. For instance, just the global electric vehicle market may reach a valuation in excess of $1.1 trillion by 2030. Moreover, the burgeoning air taxi market – which should incorporate electric propulsion – may hit a sector revenue of $6.63 billion by the same forecasted period. As well, propulsion-related innovations may radically change our waterways, thus driving the case for mobility-related stocks to buy. That being said, investors should pay very close attention to transportation stocks, such as:
|
Boeing |
$212.89 |
|
|
Aptiv |
$112.80 |
|
|
Toyota |
$143.42 |
|
|
Jody Aviation |
$4.20 |
|
|
ChargePoint |
$11.26 |
|
|
Polestar Automotive |
$5.62 |
|
|
Luminar Technologies |
$6.09 |
Boeing (BA)
Source: vaalaa / Shutterstock
Although world famous for its iconic passenger jetliners, Boeing (NYSE:BA) also eyeballs new initiatives to stay ahead of the curve. In particular, management has been aggressively competing in the air taxi arena. According to The Verge, Boeing backs air taxi startup Wisk Aero, which recently unveiled its sixth-generation aircraft.
InvestorPlace – Stock Market News, Stock Advice & Trading Tips
Two factors stand out regarding this four-seater aircraft. First, it features an all-electric propulsion system, thus facilitating better outcomes for the environment. Second and much more impressively, the aircraft can fly without a human pilot. Now, I’m not entirely sure if that’s a great idea. But over time, we could be seeing more aircraft flying automated routes. To be sure, Boeing will require some patience among stocks to buy for the future of transportation.
Following multiple controversies, it’s still struggling to regain investors’ trust. That said, Wall Street seems eager to put the past behind it. Currently, analysts peg BA as a consensus moderate buy with an implied upside target of 9%.
Aptiv (APTV)
Source: Aptiv
An automotive technology supplier, Aptiv (NYSE:APTV) grew out of the now-defunct organization Delphi Automotive Systems. Currently, the company seeks to leverage its software and systems integration expertise to solve mobility’s toughest challenges. In particular, Aptiv focuses heavily on safety protocols for autonomous driving systems. Back in 2019, Aptiv inked a joint venture with automaker Hyundai to advance the development of production-ready autonomous driving systems for commercialization of Level 4 and 5 self-driving technologies.
For full disclosure, APTV stock represents a bit of a wild ride. Since the January opener, shares gained nearly 25% of equity value. On the flipside, though, they stumbled almost 15% in the trailing year. Plus, with a price pegged at a trailing multiple of 59.49, it’s objectively overvalued. Therefore, prospective investors may want to nibble at the opportunity. Still, APTV gets a vote of confidence from Wall Street analysts, who pegged it a consensus moderate buy. Further, their average price target of $126.75, implying upside of over 9%.
Toyota (TM)
Source: josefkubes / Shutterstock.com
For investing in the here and now of the transportation sector, Toyota (NYSE:TM) makes a lot of sense. As for stocks to buy for the future of transportation, that might be a stretch at first glance. After all, the company became somewhat notorious for being a holdout regarding going all-in on EVs. Instead, Toyota insists that combustion-powered vehicles will still be relevant for years to come.
Still, don’t count out Toyota for making waves in the EV market. For one thing, the automotive giant plans to offer several EV models. Moreover, it’s investing significant funds researching and developing solid-state batteries (SSBs). Given its resources and acumen, it might break the code for large-scale SSBs. If so, that in and of itself would change the game for the future of mobility. Right now, Wall Street analysts peg TM as a consensus moderate buy. In addition, their average price target stands at $161.99, implying nearly 12% upside potential.
Joby Aviation (JOBY)
Source: T. Schneider / Shutterstock.com
Straight up, Joby Aviation (NYSE:JOBY) is a highly risky name among stocks to buy for the future of transportation. Indeed, it could make a case for the riskiest. Usually, I’d stick such ideas to the very end. However, since I’m ranking these securities based on Wall Street’s upside expectations, it’s here in fourth place.
To get everyone up to speed, Joby is one of a growing number of small enterprises focusing on air taxis or aerial ride sharing. Fundamentally, Joby aims to address the massive congestion that occurs on metropolitan streets every day. Notably, the American Transportation Research Institute “estimates that congestion costs the U.S. freight sector $74.1 billion annually, $66.1 billion of which occurs in urban areas.”
As well, you can consider the human toll of people wasting what amounts to a few days sitting in traffic every year. Ultimately, Joby aims to give folks back their time by advantaging the vertical component (literally) of transportation. Presently, Wall Street analysts peg JOBY as a consensus hold. However, their average price target stands at $5.25, implying over 24% upside potential.
ChargePoint (CHPT)
Source: YuniqueB / Shutterstock.com
If the global EV rollout is to achieve success, societies must build adequate public infrastructure networks. And that’s where ChargePoint (NYSE:CHPT) comes into the picture. Specializing in the development of EV charging stations, CHPT theoretically commands a decades-long upside narrative.
To be fair, though, the market doesn’t always see eye-to-eye with the above thesis. Sure, CHPT gained over 30% of equity value since the January opener. At the same time, during the trailing year, shares stumbled nearly 15%. Further, since its public market debut, CHPT gained a bit over 20%. While a positive figure, it’s not necessarily the most impressive.
Still, investors should consider one fundamental catalyst: 63% of all occupied housing units feature a garage or carport. That leaves quite a few needing public charging stations. Therefore, the narrative seems to favor CHPT as one of the stocks to buy. Currently, Wall Street analysts peg CHPT as a consensus moderate buy. Also, their average price target of $19.29 implies upside potential of nearly 63%.
Polestar Automotive (PSNY)
Source: shutterstock.com/DigitalPen
Polestar Automotive (NASDAQ:PSNY) makes for an intriguing case for stocks to buy because of its multi-varied approach to transportation. Primarily, Polestar represents a compelling player in the EV market. First, the different design language provides a breath of fresh air. Second, Polestar will introduce a variety of EVs to meet different tastes, from SUVs to crossovers to sports cars.
On the other side of the equation, Polestar teamed up with Candela to produce long-range electric-powered boats. Earlier this year, the two firms announced the fruits of their labor with the new Candela C-8. Featuring advanced hydrofoiling technology, the C-8 allows the boat to fly nearly a meter above the water’s surface. It’s wild stuff, articulating the point that even transportation on the high seas will get an upgrade.
A word of warning may be necessary: PSNY presents great risks, with shares down nearly 49% in the trailing year. Nevertheless, Wall Street analysts appreciate Polestar, pegging it a consensus moderate buy. Also, their average price target of $10.50 implies upside potential of over 83%.
Luminar Technologies (LAZR)
Source: temp-64GTX / Shutterstock.com
Looking well into the future of transportation, more than a few analysts believe that humans won’t be much involved. With advancements in artificial intelligence and machine learning, full automation on the roads may be possible. Certainly, lidar specialist Luminar Technologies (NASDAQ:LAZR) will do whatever it can to make this fantastical notion a reality.
Focusing on vision-based lidar and machine perception technologies, Luminar-enabled vehicles use laser sensors to detect the shapes of objects. Along with passenger cars, the company experiments with robotaxis and automation-enabled semi-trailer trucks. While the science undoubtedly intrigues, for investors, the issue comes down to viability. Unfortunately, LAZR presents high risks for prospective buyers. True, shares gained 36% of equity value so far this year. However, in the past 365 days, LAZR hemorrhaged 60%.
Nevertheless, Wall Street analysts peg LAZR as a consensus moderate buy. Also, their average price target stands at $17.50, implying upside potential of over 174%.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
More From InvestorPlace
The post 7 Stocks to Buy for the Future of Transportation appeared first on InvestorPlace.