3 EV Stocks That Could Be Multibaggers in the Making: February 2024 Edition

Market Overview - The electric vehicle (EV) market is expected to face a downturn in 2024 due to elevated interest rates and cautious monetary policy from the Federal Reserve, despite better-than-expected economic performance and low consumer sentiment compared to pre-pandemic levels [1] - There are still compelling reasons to invest in reasonably valued EV stocks, as they are trading at attractive multiples while benefiting from ongoing secular trends pushing consumers towards electric vehicles [1] BYD (BYDDY) - BYD has emerged as the world's top EV maker in 2023, surpassing Tesla in electric vehicle sales, with 526,409 units sold in Q4 2023 compared to Tesla's 484,507 [2] - In January 2024, BYD sold 205,588 electric vehicles, marking a 33.1% year-over-year increase, although it experienced a monthly decline of over 34% [2] - The company is expanding its market presence through partnerships, including one with Qatar-based Mannai to introduce its vehicles and efforts to enhance brand awareness in Europe [2] ON Semiconductor (ON) - ON Semiconductor is a leading provider of semiconductor devices, focusing on power management and connectivity solutions, with a growing emphasis on EV-related products [4][5] - The company has faced sluggish revenue growth due to a pullback in consumer spending on electronics, but it anticipates a rebound in 2024 as demand for consumer electronics and IoT may recover [5] - ON shares are currently trading at 18.3 times forward earnings, which is below many semiconductor industry peers, presenting a potential investment opportunity [6] Allego N.V. (ALLG) - Allego is a Netherlands-based EV charging company that has established a network of over 34,000 charging points across Europe, focusing on infrastructure for electric cars and heavy-duty vehicles [7] - The company reported a 28.2% increase in revenue to €28.6 million ($30.2 million) in Q3, compared to €22.39 million ($21.8 million) year-over-year [7] - Allego's unique focus on building electric vehicle infrastructure in the EU positions it well for success as the region increasingly adopts new energy products [8]