ChargePoint (NYSE:CHPT) is currently trading at low levels, yes. But it isn’t trading at those levels due to any particular fundamental weakness. In fact, I’d argue that purchasing CHPT stock right now is a great opportunity.

True, the market has softened on electric vehicle (EV) stocks. These picks aren’t quite as hot as they once were. However, the trend is still clear: EVs are here to stay. After all, major automobile manufacturers have signaled as much. For example, Ford (NYSE:F) recently invested $11.4 billion into EV development in both Kentucky and Tennessee. Meanwhile General Motors (NYSE:GM) projects it will double revenues by 2030 by relying on EVs. Similar narratives abound. 

Naturally for ChargePoint, an EV charging network provider, the opportunity is clear. 

CHPT Stock: Charged Up and Fundamentally Strong 

Make no mistake: ChargePoint is already performing well. For example, its most recent third-quarter earnings show that revenues increased by 79% year-over-year (YOY), reaching $65 million. Networked charging revenue was a particularly bright spot in Q3 as well. The segment accounted for $47.5 million of revenues. That marked a substantial increase of 111% YOY.

On top of that, margins hit 25%. That represented a marked improvement over the 20% margins the company reported a year earlier. Really, the lone problem — if it can be called that — was the increased losses in Q3. The company’s net loss reached $69.4 million in aggregate, up from a loss of over $40 million in Q3 2020. 

Why do I think that investors should not be particularly concerned with those losses? Because they are better through Q3 of 2021 than they were through Q3 of 2020. Net losses in the first nine months of 2020 reached $106.1 million. In 2021, those losses were reduced, reaching only $72.1 million. 

Those results broadly point to CHPT stock being in a fundamentally positive position. In fact, the results were strong enough that ChargePoint raised its outlook for 2022. 

Great Access, Projections Pointing to Strength

ChargePoint increased its outlook for 2022 revenues to between $235 million and $240 million. That is very much in line with where the 16 analysts covering CHPT stock on Yahoo! Finance also believe it will be. They have an average revenue estimate of $237.6 million for 2022.

That strong performance is also expected to continue. By the end of 2023, those same analysts expect the company to record approximately $379 million in revenue. If that turns out to be accurate, CHPT stock will be underpinned by 59.4% growth in that period. 

So, with all this revenue, what is the ChargePoint network business really?

ChargePoint counts 163,000 activated ports. In total, it also has over 290,000 roaming ports accessible through its network. Thus, subscribers have access to a bevy of charging stations for their electric vehicles via the company. Overall, ChargePoint is one of the largest EV charging networks in the world.

Plus, there’s more good news: this space’s compound annual growth rate (CAGR) is expected to hit 26.4% through 2028. That values the industry at $103.6 billion by 2028, boding well for CHPT given its current position. Still, it should also be noted that oil companies like Shell (NYSE:RDS-A) and BP (NYSE:BP) have both acquired EV charging businesses as well. That’s a form of competition many EV charging investors perhaps hadn’t considered before.

What to Do with CHPT Stock

All told, ChargePoint is leading the EV charging infrastructure build-out now. Its business is fundamentally strong and there’s projected growth. There are also a bevy of factors pointing to a brighter future.

The basic premise is this: charging infrastructure is slated to become increasingly important and capital will flow into the sector. And right now, CHPT stock sits in prime position to take advantage of that truth. 

It also makes sense to purchase this stock now simply because its target stock prices are much higher. Prices are almost certain to rise from here.

Of course, it isn’t as if ChargePoint has secured its place as the forever dominant charging network. Traditional energy giants like Shell and BP will be difficult competition, able to direct capital toward network purchases if and when they determine it to be necessary. Investors should keep that in mind. But they should also believe in ChargePoint’s progress so far.

On the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.