A hidden ex-penny stock to buy for the electric vehicle revolution

Hidden ex-penny stocks to buy for the electric vehicle revolution

As electric vehicle (EV) stocks like Tesla keep stealing the limelight, it's easy to forget that there are hundreds of businesses working behind the scenes. And while there are plenty of penny stocks looking to cash in on this space, one company in particular caught my eye.Mostly because it's grown so much in the last few years, it's no longer in penny stock territory, with a market cap now comfortably above £100m.

Deliveries of critical electronics

The company in question is Solid State (LSE:SOLI). It designs and manufactures electronic components needed for larger systems across various industries, including the automotive industry. And after a series of strategic acquisitions, its reach began to expand to enterprise-level customers.

Looking at the latest results, increased demand from the EV and defense sectors saw revenues jump 48% from £85m to £126.5m between March 2022 and 2023. they rose from £3.7m to £9.4m over the same period.

Needless to say, this performance certainly indicates that management is benefiting well from industry trends. And with a seemingly robust balance sheet, there don't appear to be any immediate solvency or liquidity issues.

In other words, from a financial perspective, this ex-penny stock appears to be perfectly positioned to continue to thrive. Even more so when we consider that the order book includes additional contracts worth £116.2m compared to £89.7m a year ago.Although Solid State shares are up nearly 30% since April, the stock has gone through numerous bouts of volatility. For example, between January and March of this year, shares fell by 25%.

In the short term, volatility can be expected, especially among smaller businesses. But seeing swings of this magnitude shows that there remains some significant uncertainty about the long-term potential of this business.After all, Solid State is far from the only company operating in this space. And many of its competitors have significantly more funds available to seize new opportunities.

The small size of the group could also be a disadvantage in finding priority in obtaining raw materials. Supply chain disruptions continue to wreak havoc on the sector. And if suppliers decide to prioritize larger customers, Solid State's order fulfillment could slow down considerably, causing customers to jump ship.

Nothing is ever guaranteed in the world of investing. This is especially true when venturing into penny stock territory. But Solid State, in my opinion, looks like an excellent business that is starting to get off the ground.And assuming management can continue to gain more market share, the long-term potential looks huge, not just in EVs, but also in 5G, IoT, healthcare and other growth sectors.

Therefore, despite the risk, I think this stock could make an excellent, albeit small, position in my investment portfolio. And that's why I'm considering grabbing some shares once I have more capital on hand.

When investment expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter, which has been running for almost a decade, has provided thousands of paying members with recommendations on the best stocks from the UK and US markets.And right now, Mark thinks there are 6 exceptional stocks that investors should consider. Want to find out if Solid State Plc made the list?

The electric vehicle (EV) revolution is reshaping the automotive industry, driving innovation, sustainability and investment opportunities. As the world moves toward cleaner transportation alternatives, investors are looking for potential winners in this emerging market. In this article, we uncover the hidden ex-penny stocks that promise substantial growth in the electric vehicle sector. Get ready to find out why this stock should be on your radar.

Understanding the Electric Vehicle Revolution

Investigating investment opportunities

While established electric car makers often dominate the headlines, there is a new investment opportunity lurking in the market – ex-penny stocks that are poised for growth. One such stock that has caught the attention of savvy investors is [Company Name], a company that started out as a penny stock but has since shown remarkable potential in the EV sector.

Strategic Partnerships: [Company Name] has strategically partnered with key players in the electric vehicle ecosystem. Partnerships with battery manufacturers, charging infrastructure providers and technology innovators have enabled the company to tap into various aspects of the EV market.

Innovative technology: The company's cutting-edge technology addresses key challenges in the EV industry, such as battery efficiency, range improvement and charging infrastructure compatibility. These innovations could play a key role in increasing the adoption rate of electric cars.

Strong Financials: Despite its humble beginnings as a penny stock, [Company Name] has demonstrated strong financial growth. This stability is proof of its effective management and successful implementation of the business strategy.Expanding Market Presence: [Company Name] has successfully expanded its market presence beyond local borders with plans to penetrate international markets that are embracing the EV revolution.

Investment potential and outlook

As the EV market continues to boom, hidden gems like [Company Name] are poised to benefit from this upward trajectory. While investing in ex-penny stocks carries inherent risks, thorough research and due diligence can help investors make informed decisions.

It is important to remember that the stock market is subject to volatility and past performance is not always an indicator of future results. Investors are therefore advised to consult financial professionals and consider their risk tolerance before making any investment decision.

The electric vehicle revolution is opening up a world of investment opportunities, with former penny stocks like [Company Name] emerging as potential winners. With its strategic partnerships, innovative technology, strong financial results and expanding market presence, [Company Name] has the ingredients for success in the evolving EV landscape.

Remember that investing involves risks and it is important to approach the market carefully. While the growth potential is exciting, it is essential to do thorough research and seek professional advice before making any investment. As the electric vehicle revolution charges forward, [Company Name] could be your ticket to a wave of change and growth.