Canadians: 3 Top EV Stocks to Buy Today

TSX investors on the hunt for exposure to the electric automobile market should snag EV stocks like Blackberry Ltd. (TSX:BB)(NYSE:BB).

| More on:

The electric vehicle market has continued to catch the attention of investors in the beginning of this decade. This is a market geared up for big growth in the years and decades ahead. Allied Market Research recently projected that the global electric vehicle market would grow from $162 billion in 2019 to over $800 billion by 2027. This would represent a compound annual growth rate (CAGR) of 22.6% over the projected period.

Canadians should look to get in on this lucrative space. Today, I want to look at three of the top EV stocks to snatch on the TSX. Let’s dive in.

Why lithium stocks are hot again

Lithium stocks were red-hot in the final years of the 2010s, before succumbing to a sharp correction. The lithium gold rush was stumped by a lack of demand, but that is changing to kick off this decade. Lithium Americas (TSX:LAC)(NYSE:LAC) stock has already increased by more than five times its value from a year ago. Its shares were down 6% in early afternoon trading on January 27.

Recently, the U.S. Bureau of Land Management (BLM) paved the way for Lithium Americas to jump fully into lithium production. It gave final approval to Lithium Americas’ Thacker Pass battery-grade lithium carbonate project in Nevada, opening the door to commercial production in 2022.

This EV stock is a top auto parts manufacturer

Magna International (TSX:MG)(NYSE:MGA) is the largest automobile parts manufacturer in North America. The automobile sector took a significant hit during the COVID-19 pandemic. EVs were not exempt from this pullback. However, the picture is looking brighter in the beginning of 2021. Shares of Magna have more than tripled from the 52-week low it fell to during the March 2020 market crash.

This top auto parts company has attracted attention since it announced a further foray into the EV space in late December. It will form a joint venture with LG Electronics to build components for electric vehicles. Earlier in 2020, Magna revealed that it would help to manufacturer an electric vehicle for start up Fisker Inc. in Europe.

Shares of Magna have gained huge momentum over the past year. Value investors may want to wait for a more attractive entry point, especially as we await its next batch of earnings. Magna also offers a quarterly dividend of $0.40 per share, which represents a 2.3% yield.

How BlackBerry is moving into the EV space

BlackBerry (TSX:BB)(NYSE:BB) is the final EV stock I want to look at today. Its shares have erupted in January, partly on the back of a social media-fueled campaign. However, it has also attracted positive attention after it announced a collaboration with Amazon. The two companies will aim to develop cutting-edge automobile software. This software, called IVY, is expected to hit the market in vehicles by 2023.

Moreover, according to a recent CNET report, Baidu’s high definition mapping technology for its vehicles will run on BlackBerry’s QNX Neutrino real time operating system. The technology will be used by Guangzhou Automobile Group and future electric vehicles from Baidu.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and Baidu. Tom Gardner owns shares of Baidu. The Motley Fool owns shares of and recommends Amazon and Baidu. The Motley Fool recommends BlackBerry, BlackBerry, and Magna Int’l and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

More on Investing

Canadian dollars in a magnifying glass
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These top dividends stocks have consistently paid and increased their dividends. Further, this trend will continue.

Read more »

Lights glow in a cityscape at night.
Investing

Canadian Infrastructure Stocks to Buy Now

These two Canadian infrastructure stocks offer interesting investment opportunities whether you’re focused on income or price appreciation.

Read more »

A plant grows from coins.
Tech Stocks

3 Growth Stocks Wall Street Might Be Sleeping on, But I’m Not

Don’t miss your chance to load up on these three beaten-down stocks.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Tuesday, November 5

Updates related to the U.S. presidential election will remain on TSX investors’ radar today as the third-quarter corporate earnings season…

Read more »

think thought consider
Tech Stocks

Is CGI Stock a Buy Even With No Dividend Yield?

CGI stock may not have a dividend to speak of. But does that necessarily mean you should ignore this top…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

Why Now Is the Time to Invest in Canadian AI Stocks

Are you looking for one of the most solid Canadian AI stocks out there? This one is probably your best…

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

Why AI Stocks Should Be in Every Canadian Investor’s Portfolio

AI stocks continue to be one of the best options out there for long-term investing, especially when considering Canadian options.

Read more »

stock research, analyze data
Bank Stocks

Canadian Bank Stocks: Buy, Sell, or Hold?

There are opportunities and risks on the horizon for the Canadian banks.

Read more »