4 Stocks Poised to Capitalize on the EV Revolution in 2026

Electric vehicles (EVs) are becoming a core part of global transportation. Advances in battery technology and a steady build-out of charging infrastructure are making EVs more practical and affordable for everyday use. Modern EV batteries last longer, charge faster and cost less to produce. These improvements have helped narrow the price gap between electric and gas-powered vehicles, expanding EV appeal beyond early adopters. At the same time, fast-charging networks are spreading across major markets, reducing one of the biggest pain points for potential buyers: charging time.

Against this backdrop, companies positioned across vehicles, batteries, and charging infrastructure could offer compelling opportunities. Blue Bird Corporation BLBD, Workhorse Group Inc. WKHS, QuantumScape Corp. QS, and ChargePoint Holdings, Inc. CHPT stand out as attractive names to watch.

Adoption Uneven, But Momentum Undeniable

While adoption may not move at the same pace everywhere, the long-term shift toward electrification remains firmly intact.

In the United States, President Trump has rolled back EV subsidy programs introduced under the Biden administration. Meanwhile, the European Union has deferred its ban on combustion-engine vehicles beyond 2035. These changes have created temporary speed bumps.

Still, demand continues to grow globally. EV sales rose 21% year over year to 18.5 million vehicles in the first 11 months of 2025, per Rho Motion. Gartner expects the number of electric vehicles in use to grow 30% in 2026, reaching 116 million units worldwide. Plug-in hybrid vehicles are also forecast to increase by 32%.

China remains the engine of this transition. Competitive pricing, strong government support, and aggressive innovation have pushed EVs toward a majority share of light-vehicle sales. Adoption is also accelerating in emerging markets like India, Thailand and Indonesia.

Per EV Volumes, global plug-in vehicle sales jumped 25% in 2024 to 17.8 million units, capturing nearly 20% of the light-vehicle market. Sales are projected to rise to 22.1 million in 2025, or a 24% share, led by strong demand in China and emerging markets. By 2030, global volumes are expected to reach 40.7 million vehicles, accounting for 42% of the market.

4 Stocks Poised to Benefit

Blue Bird is a leading player in low- and zero-emission school buses, with more than 20,000 propane, natural gas and electric buses operating across the United States. The company is well positioned to benefit from long-term tailwinds, including a growing school-age population, an aging national bus fleet, and ongoing federal funding for clean school transportation. The company is also expanding services through its Blue Bird Energy Services and Clean Bus Solutions joint venture, providing fleets with complete charging infrastructure solutions.Its U.S. manufacturing network is well-positioned to meet demand, and 60% of its sales are non-diesel.

Demand remains strong. In fiscal 2025, the company delivered a record 901 electric buses. It currently has an order backlog of 680 electric buses, supporting its 2026 sales outlook. Management expects fiscal 2026 to deliver results similar to 2025 and is targeting $1.5 billion in revenues and $220 million in adjusted EBITDA. Over the longer term, Blue Bird is aiming for adjusted EBITDA margins above 16% on roughly $2 billion in revenues.

The Zacks Consensus Estimate for BLBD’s fiscal 2026 sales implies year-over-year growth of 6%. The bottom-line estimates for the current fiscal year have moved north by 6 cents over the past 30 days. The consensus mark for BLBD’s EPS in the next fiscal year suggests growth of 13% from fiscal 2026 projected levels.  Blue Bird stock currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Workhorse is aiming to redefine the medium-duty truck market with a software-first approach to electric commercial vehicles. Its trucks are designed to be powerful, cost-efficient, and reliable, while offering zero tailpipe emissions. The company recently completed its merger with Motiv Electric Trucks, a move that has strengthened its manufacturing base and expanded its product portfolio. Workhorse now has a nameplate production capacity of more than 5,000 vehicles per year, positioning it to scale as demand grows.

Workhorse has already served 10 of the largest medium-duty fleets in North America, working with some of the most recognized commercial brands. It is entering 2026 with a solid sales pipeline and a growing backlog that includes electric trucks, step vans, school buses, and shuttle vehicles. Beyond vehicle sales, Workhorse operates a mix of gas and electric step vans through its FedEx Ground ISP fleet under the Stables project, giving it real-world operating data and fleet experience.

With a clean balance sheet, up to $50 million in additional debt capacity, and access to public markets, Workhorse has the financial flexibility to execute on growth opportunities. The Zacks Consensus Estimate for WKHS’ 2025 and 2026 bottom line suggests year-over-year improvement of 90% and 56%, respectively. The stock currently carries a Zacks Rank #2.

QuantumScape is powering the EV revolution from the battery side. It is developing solid-state lithium batteries that promise greater energy density and faster charging. While still pre-revenue, the company has been making meaningful progress. In June 2025, QS announced a major manufacturing breakthrough with its new Cobra process. Compared with the earlier Raptor system, Cobra is roughly 25 times faster and significantly more compact, a key step toward scalable production. The company followed that up in the third quarter with the start of B1 sample deliveries, marking another important milestone. Management said multiple automakers are now evaluating these cells.

QuantumScape’s progress was also showcased at the IAA Mobility Show in Munich, where it unveiled a Ducati V21L motorcycle in partnership with Volkswagen powered by QSE-5 solid-state cells. Beyond Volkswagen, the company signed two new joint development agreements with major global automakers and expanded partnerships with Corning and Murata Manufacturing to scale ceramic separator production.

In the third quarter, QuantumScape recorded $12.8 million in customer billings for the first time. Core equipment for its Eagle Line pilot facility in San Jose is now fully installed, helping move the company closer to commercialization. The Zacks Consensus Estimate for QuantumScape’s 2025 and 2026 bottom line suggests year-over-year improvement of 20% and 16%, respectively. QS stock currently carries a Zacks Rank #3 (Hold).

ChargePoint is one of the leading players in EV charging, offering a full ecosystem of hardware, software, and services across North America and Europe. Its network connects drivers to more than 1.3 million public and private charging ports worldwide, helping power over 16 billion electric miles. This scale gives ChargePoint a strong position as charging demand grows alongside EV adoption. The company has also taken steps to strengthen its financial footing. Last month, ChargePoint reduced its outstanding debt by $172 million, cutting total debt by more than half and improving balance sheet flexibility.

On the product side, it recently launched the new ChargePoint Platform, a next-generation software solution that allows operators to monitor station performance, adjust pricing, and respond to customer needs in real time. ChargePoint continues to build momentum with public-sector customers. It secured a third consecutive Sourcewell cooperative purchasing contract, enabling U.S. and Canadian public agencies to procure its charging solutions more easily. Strategic partnerships, including its collaboration with Eaton, further support long-term growth.

Financial performance is showing steady improvement. Fiscal third-quarter 2026 revenues rose 6% year over year to $105.7 million, with subscription revenues up 15%. The Zacks Consensus Estimate for CHPT’s fiscal 2026 and 2027 bottom line suggests year-over-year improvement of 32% and 36%, respectively. The stock currently carries a Zacks Rank #3.

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