There’s been a lot of recent investor enthusiasm for electric vehicle (EV) names that still have operations and products on the drawing board. Other EV companies are bringing in revenue, but investors have pushed valuations to nosebleed levels.
XL Fleet (NYSE: XL) is an EV company that went public in December after merging with a special purpose acquisition company (SPAC). And it has a growing existing business in an EV niche that many people may not have considered. The stock is down more than 25% from an initial pop, and though it’s still not cheap by some valuation measures, XL has a clear path to grow the business into the valuation. For investors looking just a few years down the road, even a small position in XL makes sense today, making it my top renewable energy stock to buy in January.