Stocks to buy

Ideanomics (NASDQ:IDEX) is a company with a dual focus. Mobile Energy Global (MEG) is the company’s commercial electric vehicle (EV) division. Ideanomics Capital is a fintech. The dual approach has both supporters and detractors, but both probably agree it’s an improvement. The company has been famously hard to pin down in the past. IDEX stock has been on the volatile side for the past 12 months — a familiar pattern for investors — but even after the latest correction, it’s up more than 594% since this time last year.

Source: nrqemi /

The company (most recently known as Seven Stars Cloud Group) has seemingly gone through as many business ideas as it has names. However, it is now down to two areas of focus and the company’s EV bet has come at the perfect time. With MEG expanding through acquisitions and generating the lion’s share of Ideanomics revenue, there is a sense of stability.

IDEX stock currently has an “A” rating in Portfolio Grader. Shares have increased rapidly in value over the past the year. Furthermore, the moves Ideanomics has been making open up the opportunity for more growth in the future.

Big Moves by MEG Paying Off

MEG has expanded into many facets of the commercial EV market, and the past year has seen a flurry of announcements by Ideanomics related to its MEG electric vehicle division.

One of the biggest was its new Medici Motor Works. Battery-powered electric vehicles will be aimed at commercial fleets with short-haul or closed-circuit operations — think mines, airports and seaports. Hydrogen fuel-cell versions will be suited for long-haul operators.

In September, it was the announcement of an increased stake in Solectrac. The California-based company makes battery-powered electric tractors for agricultural and industrial applications.

On Jan. 5, Ideanomics announced it was buying Wireless Advanced Vehicle Electrification, Inc. (WAVE). The latest acquisition gives the MEG division technology for wirelessly charging commercial vehicles through inductive plates buried in a roadway. This has applications for systems like mass transit, where EVs need range and can’t be easily taken out of service for recharging.

In addition, the company has a thriving business buying EVs from other producers and leasing them. In December, it announced the purchase of 2,000 electric ride-hailing vehicles for deployment throughout the Chinese market.

There were many more announcements through the year, but you get the picture. Ideanomics is going all-in on commercial EVs.

In the company’s last quarter, the importance of MEG was on full display. MEG accounted for 95% of the company’s total revenue for the quarter. And you can draw a direct line between the company’s continued push into the EV market and the impressive growth notched by IDEX stock over the past year.

Bottom Line on IDEX Stock

As I mentioned earlier, there is a distinct split in opinion over Ideanomics, and especially over its dual business focus. 

InvestorPlace contributor Josh Enomoto is not a fan, warning that investors should “stay clear of IDEX stock while the company figures out what it’s good at.” That’s a valid take on the situation. Not helping is the fact that Robinhood investors were a factor in the IDEX stock growth picture. That can be a warning sign.

However, another approach is to look at MEG and its expanding presence in the commercial EV market as a big opportunity. As InvestorPlace’s Divya Premkumar points out, the buzz over electric cars and zero-emission vehicles makes IDEX a great play this year.

Which camp are you in? 

Personally, I think that Ideanomics is a company that has spent considerable time figuring things out and now has a winning formula. In particular, MEG, the company’s bet on all things EV, is paying off. History has shown that owning IDEX stock may require some nerves, with a pattern of rapid spikes followed by corrections. However, I believe that the overall trajectory is going to be upward as more money flows into the EV market.

If you’re looking for an inexpensive EV stock with serious growth potential, the latest IDEX correction makes this stock very attractive.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.