Many investors were pleasantly surprised to see the stock market continue to show signs of strength on Monday. Yet Wall Street stayed on the ascendancy on Tuesday morning as well, with stock index futures suggesting another modestly higher open as market participants considered the impacts of higher oil prices on the already complex macroeconomic picture.
A pair of stocks had good news to announce that made their shareholders happy. Craft-goods marketplace specialist Etsy (ETSY -2.17%) got a vote of confidence from a set of investment professionals, while EVgo (EVGO -1.71%) won a contract that could help its business well into the future.
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Etsy stock gets a Wall Street boost
Shares of Etsy moved higher by 3% in premarket trading on Tuesday morning. The online marketplace for homemade goods attracted the attention of Wall Street analysts, who had good things to say about the company.
Analysts at Piper Sandler upgraded shares of Etsy from neutral to overweight. The analysts argued that Etsy's valuation has become more compelling for value-oriented investors, with the share price having experienced a decline of nearly 30% in just the past two months.
In Piper Sandler's view, Etsy combines several attractive traits. Financially, the company sports solid margins that make it stand out among online retail platforms. Even with macroeconomic headwinds holding back customer activity in the short run, Piper believes that Etsy should see trends toward greater spending from active buyers reassert themselves before too long. Moreover, Etsy remains attractive for those who value sustainability as well as those seeking personalized products that have special appeal to consumers.
Etsy's growth has slowed after a huge boom at the beginning of the COVID-19 pandemic, but the company is now seeking new ways to grow its business. That might give some shareholders the impetus they need to make new investments before an economic recovery leads to a turnaround in Etsy's share price.
Time to go for EVgo?
Shares of EVgo also moved higher by about 3% in premarket trading on Tuesday morning. The provider of public fast-charging stations for electric vehicles announced a contract win that could help it continue to establish itself as a major player in an important industry.
EVgo said that the California Energy Commission's California Electric Vehicle Infrastructure Project 2.0 program selected the company for proposed awards of $6.6 million. The state-run agency provided the funding as part of its initiative to deploy more fast-charging electric vehicle infrastructure in the central and eastern parts of California, with a focus on giving low-income or disadvantaged communities more direct-current fast chargers delivering at least 150 kilowatts of electricity. EVgo intends to install higher-powered 350 kilowatt chargers at the locations called for under the program.
In particular, EVgo expects to build more than 100 fast-charging stalls in 17 different locations, which include central valley communities Fresno and Manteca as well as Bay Area locations like Hayward and San Jose. The projects will heighten EVgo's already established commitment to bring the benefits of electrification to neighborhoods that might otherwise go unserved.
EVgo has seen a big ramp-up in customer use of its charging network, which included more than 2,800 charging stalls at the end of 2022. Its recent collaboration with truck stop operator Pilot Flying J helped draw attention to the stock, but EVgo hopes to take advantage of both the public and private sectors in continuing to expand. With demand for electric vehicles on the rise, EVgo has a huge opportunity to make a name for itself in the industry.
