2 Buy-Rated Electric Vehicle Stocks Outperforming NIO in 2021

In 2020 shares of Chinese electric vehicle (EV) behemoth NIO (NIO), skyrocketed a whopping 1,110%.  As a result, NIO dominated the headlines.  Its steep valuation has triggered a mild sell-off in 2021, and NIO’s stock is underperforming, down 4% year-to-date (YTD). ..

However, there are other EV stocks that are finding success this year and outperforming NIO.  Today I’m going to take a look at two of these stocks:  Niu (NIU) and Fisker (FSR).

Niu Technologies

Niu is a China-based EV company that manufactures and sells electric scooters. In the first quarter of 2021, the Niu sold close to 150,000 units and its sales rose 135% year over year to $85 million.

In 2020, its sales rose 18% to $375 million. According to Wall Street estimates, the company is now poised to increase sales by 67.4% to $636 million in 2021 and by another 40% to $891 million in 2022. Unlike most other EV stocks, Niu is already reporting an adjusted profit. In 2020, adjusted earnings stood at $0.41 per share. Analysts expect earnings to rise to $0.64 in 2021 and to $1.07 in 2022.

Given its market cap of $2.44 billion, Niu stock is trading at a forward price to sales multiple of 3.83x which is very reasonable considering its growth rates. Its price-to-earnings ratio of 50x might seem steep but its bottom-line expansion supports a premium valuation.

Further, Niu ended Q1 with a cash balance of $950 million and debt of just $200 million. Niu has established a strong presence in China which is already the largest electric scooter market in the world. Recently, Niu confirmed it’s looking to enter the markets in North America and Europe which will drive top-line significantly higher. In 2021, the company forecasts total shipment volume to range between 900,000 units and 1.1 million units.

Niu stock is up 253% since its IPO in late 2018 and up 9% in YTD. Analysts have an average price target of $43.33 for NIU, which is 41% higher than its current price.

Fisker Inc.

Fisker is a pre-revenue EV company valued at a market cap of $5.4 billion. It ended Q1 with a cash balance of $985 million and increased full-year operating expense guidance by $30 million. Fisker claimed it has…

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