A very simple rule to make money in the market is to buy when there is fear. Of course, there also needs to be long term fundamental factors that support the logic of buying depressed stocks. With the market trading near all-time highs, it’s relatively difficult to find value stocks.
The best idea is to look at depressed sectors that have the potential to bounce back in the coming years. The electric vehicle (EV) sector is one such area, and that’s why now is the best time to buy undervalued EV stocks . Without a doubt, the recent depression in EV stocks has been backed by negative developments.
These include slower than expected EV adoption, macroeconomic and geopolitical headwinds and intense competition. However, there are high-quality EV companies that are likely to survive and continue growing beyond the decade. This is a solid list of three undervalued EV stocks to buy before they surge higher.
Besides the valuation factor, these EV companies have good fundamentals that will support navigation through challenging times. Tesla (TSLA) Tesla (NASDAQ: TSLA ) stock has already surged from lows with a rally of 36% in the last month. However, the EV stock remains down 7% in the last 12 months.
I expect a strong comeback for Tesla once industry sentiments improve. From a macroeconomic perspective, rate cuts are likely to support growth and lower the cost of borrowing. This is likely to help Tesla in accelerating deliveries growth.
However, the key reason to be bullish on Te.