For continued success in online stock trading, you need not only advanced trading software but also insight to identify stocks with massive opportunity. The electric car industry is heating up as much as the autonomous vehicle industry. Both are closer to mass market reality than ever before, making them hotbeds for investment. For now, we'll focus on the electric car market.

Investopedia's Shoshanna Delventhal reports Investment firm SkyTop Capital Management's Auto Management Hedge Fund focusing on stocks potentially benefiting from the national and global push towards electric cars, as part of SkyTop's greater focus on industries that face disruption on a broad scale, particularly the auto industry. It expects electric vehicles (EVs) to become mainstream in the next 20 years. It recommends some EV industry stocks, many of which supply crucial components to the major automobile companies looking to manufacture electric as well as autonomous vehicles.

Advanced Copper Wire Technology Provider

Let's start with Aumann ($AAG). This German company manufactures equipment that enables mass production of EV engines and supplies to companies such as BMW, Mercedes-Benz and Volkswagen. It has an advanced technology for winding copper wire within an electric vehicle (EV). That improves the efficiency of the motor and increases its range. That's a very attractive feature that can make these EVs more practical without the need for frequent charging. It helps improve the use of the EV even beyond city limits, to inter-city travel. It is an important factor in effective marketing of modern electric vehicles. SkyTop expects Aumann's CAGR (compounded annual growth rate) to continue in the region of 25% to 30%.

Major Battery Ingredient Provider

Sherritt International ($SHERF) is another EV stock suggested by SkyTop. This is a Canadian power generation as well as oil and gas company that is also one of the largest foreign investors in Cuba. So what does an oil and gas company have to do with electric vehicles? Well, the company carries out cobalt mining. Cobalt is a major ingredient of batteries in electric vehicles. If you check the price of cobalt, you'll know that it has experienced a nearly 250% surge in the past few years. Right now, there have been some issues faced by the company in the Congo that have caused its Cuba mine to be among the least expensive cobalt and nickel mines in the world. That makes it quite attractive when considering the current and future growth of cobalt as mass production of electric vehicles increases.

Aluminum Supplier for Light but Strong EV Construction

Constellium ($CSTM), another SkyTop favorite, is trading at a price much lesser than that of its rivals, considering the enterprise value to Ebitda. Constellium deals with aluminum production, which is a very important ingredient in the manufacture of modern automobiles that rely so much on lightweight construction. That's also a factor for electric cars. Aluminum is lighter and stronger, and the preferred choice for electric automobile bodies.

SkyTop believes that Constellium could grow by more than twice in the coming 12 to 24 months, touching somewhere around the mid-$20s. This would be facilitated by the free cash flow coming from long-term contracts as the stock cuts back on its capital expenditures.

Digital Tech Provider for Cockpit Infotainment

Visteon ($VC) is a spinoff of Ford Motor Co. ($F) and provides various components to the auto industry. Most important of this is the consolidated electronic and infotainment cockpit features it offers. Future cars will have everything digitalized and Visteon would be more than ready to pounce on the opportunity, not only supplying such systems to high-end cars but also to vehicles in the lower spectrum, according to SkyTop's managing co-partner Dan Sobol.

Visteon is attractive now since the stock trades at only below 10 times the projected Ebitda for 2018. Sobol thinks Ebitda margins would improve to 14% from somewhere around 11.6% in a period of three years thanks to a better mix and greater cost-cutting.

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