Three Cheap Stocks to Buy Heading into New Year 2023

Markets have been chaotic.

There was the coronavirus, inflation, aggravated consumers, fears of recession, a more aggressive Federal Reserve, issues with Russia, China, and North Korea. And while we can’t tell you what could possibly happen next, we can point you in the direction of hot stocks that are not only oversold, but setting up for potentially big moves.

Lithium Americas (LAC)

Lithium Americas could easily see higher highs.

All thanks to a lithium bull market that shows no signs of slowing – at least not soon.  For one, by 2030, 125 million electric vehicles could be on the road.  Two, major automakers are starting to abandon internal combustion engines for EVs.

However, for millions of EVs to hit the roads, each will need around 22 pounds of lithium. Unfortunately, the world is in short supply, with massive demand.

Even the International Energy Agency is warning that the, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.”

That’s a strong catalyst for Lithium Americas.

For one, the company will provide an update and guidance on its production ramp-up schedule around the end of the current year.  Also, as of September 2022, over 100 tonnes of lithium ore were collected at Thacker Pass to feed the Lithium Technical Development Center to produce product samples for potential customers and partners.

Riley analyst Matthew Key has a $39 price target on LAC, with a buy rating. The analyst is still pleased that the Cauchari-Olaroz project continues to advance towards completion with early stage production set for later on in the fourth quarter.

Blink Charging (BLNK)

Electric vehicle charging stocks, like Blink Charging (BLNK) could accelerate.

For one, according to Fortune Business Insights, “Governments worldwide are contributing towards setting up the charging stations. For instance, the Chinese government has approved the development of fast-charging stations by national policies. Similarly, in the United States, the government is offering all its support and funds to develop EV charging stations.”

Two, California is set to prohibit the sale of gasoline-powered calls by 2035.  “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 DNYUZ.com.

Three, the Biden Administration is committed to building a national network of 500,000 EV charging stations by 2030.  And four, earnings growth at Blink Charging has been solid.  In its most recent quarter, the company said total Revenues increased 164% to $11.5 million.

Product Sales increased 170% to $8.8 million in the second quarter of 2022, an increase of $5.6 million from the same period in 2021, primarily driven by increased sales of commercial chargers, DC fast chargers, and residential chargers.

Service Revenues, which consist of charging service revenues, network fees, and ride-sharing service revenues, increased 154% to $2.2 million in the second quarter of 2022, up $1.4 million from the second quarter of 2021.  It also posted a net loss of $22.6 million, or 52 cents a share, as compared to a year-earlier net loss of $13.5 million, or 32 cents a share.

Sunrun Inc. (RUN) 

Sunrun (NASDAQ: RUN) is a $4.91 billion solar company that could see brighter days.

For one, the stock will benefit from the Inflation Reduction Act.

“The Inflation Reduction Act of 2022 invests in the technologies needed for all fuel types – from hydrogen, nuclear, renewables, fossil fuels and energy storage – to be produced and used in the cleanest way possible. It is truly all of the above, which means this bill does not arbitrarily shut off our abundant fossil fuels. It invests heavily in technologies to help us reduce our domestic methane and carbon emissions and also helps decarbonize around the world as we displace dirtier products.”

Two, Sunrun reported sold earnings. The company saw EPS of 99 cents on sales of $631 million.  That was far better than expectations for a loss of six cents on sales of $564 million.

As reported by Barron’s: “It was a really significant beat” on subscriber value, said CEO Mary Powell in an interview with Barron’s. She added that despite the rate increases, customers still receive a deal compared to their local utilities when they sign up for solar—she pegs the savings at between 5% and 40%.”