Why This Hidden EV Stock Is a Smart Buy

Everyone knows that hybrid and electric vehicles (EVs) are the future of transportation, so the excitement around investing in the sector is understandable. However, with many of the better-known plays in the industry looking expensive, it makes sense to consider some ways to play the theme and excitement that are off the beaten path. One way is to look at industrial conglomerate ABB (NYSE: ABB). Here's why.

Focusing on the charging network companies, a quick look across the leading players like ChargePoint (NYSE: CHPT), Blink (NASDAQ: BLNK), and EVgo (NASDAQ: EVGO) shows a group of stocks trading on hefty valuations. They are all fine companies with potential, but they are currently loss-making. Moreover, when investors can't base valuations on earnings or cash flow they often use price-to-sales (P/S) ratios, and even on this basis, these stocks are looking extremely expensive.

Data source: Marketscreener.com, author's analysis. *Data is for fiscal years 2023 and 2024.

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Source Fool.com