• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Home
  • Clean Energy Stocks
  • Near Future
  • Oil and Gas
  • Solar
  • Wind

Clean Energy Sector

Profiting from the Global Energy Transformation

  • Home
  • Clean Energy Stocks
  • Near Future
  • Oil and Gas
  • Solar
  • Wind

Albemarle

The Top Electric Vehicle Stocks for 2023

December 29, 2022 By admin Leave a Comment

In this Article:

  • Here are five of the top electric vehicle stocks to own heading into 2023.
  • Albemarle (ALB): It is oversold with big potential in a tight lithium market.
  • Krane Shares EVs and Future Mobility (KARS): This ETF offers a smart way to diversify at low cost.
  • Freeport McMoRan (FCX): FCX provides a solid way to trade the recovery in copper prices.
  • ChargePoint (CHPT): We can’t have millions of EVs on the roads with no place to charge them.
  • Fidelity EVs and Future Transportation ETF (FDRV): It is another smart ETF to diversify at low cost.

Electric vehicle stocks had a rough ride in 2022, all thanks to shortages of essential supplies, sky-high inflation, rising interest rates and issues over the pandemic. However, don’t count them out just yet. Global leaders are demanding millions of EVs on the roads in an effort to reduce emissions. The U.S. wants to reduce emissions by 52%. Europe is targeting 55%. China even says it will stop releasing carbon dioxide in the next 40 years.

The International Energy Agency says we could see up to 135 million electric vehicles on the roads in the next decade. Analysts at Ernst & Young say EVs could outpace combustion engines globally over the same period. Bloomberg NEF says that, by 2030, more than half of passenger cars sold in the United States will be electric, driven in part by incentives put in place by the Inflation Reduction Act.

That being said, I’d start buying beaten-down electric vehicle stocks, and related stocks, for longer-term growth.

Albemarle (ALB)

Albemarle (NYSE:ALB) is one of the top electric vehicle stocks to own heading into 2023. Not only is it ridiculously oversold, but it’s also one of the top ways to trade the lithium story.

As the world continues to deal with a tight supply-demand issue with lithium, ALB is well-positioned to capitalize. For one, the company drew about 60% of its sales from lithium in the third quarter. Two, company revenues are surging along with lithium prices, which soared about 100% year-over-year.

We also have to remember the lithium story isn’t cooling off — at least not anytime soon. For an idea of just how tight the lithium situation is, Forbes.com contributor Tristan Bove says, “At current extraction rates, carmakers will need more mining to hit industry forecasts of as many as 300 million electric vehicles on the road worldwide by 2030, as will countries to meet their commitments to achieve net-zero carbon emissions.”

[Alexander Green: The New King of LNG]

Krane Shares Electric Vehicles and Future Mobility (KARS)

It’s never a good idea to put all your eggs in one basket. Instead, you want to diversity for safety, with an exchange-traded fund such as the Krane Shares Electric Vehicles and Future Mobility (NYSEARCA:KARS). With this fund, all your eggs are in different baskets: electric vehicles, autonomous driving, lithium and copper production, hydrogen fuel and semiconductors. In fact, you’re safer diversifying with an ETF like KARS, than putting all your money in a single stock like Tesla (NASDAQ:TSLA).

With an expense ratio of 0.70%, some of the KARS ETF top holdings include Samsung (OTCMKTS:SSNLF), Panasonic Holdings (OTCMKTS:PCRFY), Aptiv (NYSE:APTV), Li Auto (NASDAQ:LI), BYD Co. (OTCMKTS:BYDDY) and dozens more. Also, while the KARS ETF is down about 46% from its 2021 highs, give it time. As the EV story improves, I’d like to see the ETF again challenge its former high of $54.43.

Freeport McMoRan (FCX)

Another key component of the electric vehicle story is copper. That’s because EVs use about two and a half times more copper than your combustion engine cars, which could help pull Freeport McMoRan (NYSE:FCX) well off recent lows.

In fact, “Between today and 2035, achieving the net-zero emissions by 2050 goals will translate into a rapid ramp-up of copper demand, increasing by more than 82 percent between 2021 and 2035,” according to S&P Global analysts, as quoted by InvestingNews.com. “This ramp-up is largely driven by the required transition to clean vehicles and electrification of the economy.”

Helping, ConocoPhillips (NYSE:COP) CEO and FCX Director, Ryan Lance, just bought $988,300 worth of FCX stock at an average price of $31.88 each. Better, FCX just declared a cash dividend of $0.15 per share on FCX’s common stock, payable on Feb. 1, 2023, to shareholders of record as of Jan. 13, 2023. From a current price of $37.74, I’d like to see the FCX stock rally back to $50, especially as copper prices recover.

[Nomi Prins: 10x Gains on a Small Firm Disrupting a Critical American Industry]

ChargePoint (CHPT)

With the electric vehicle boom set to accelerate, we’ll need a good deal of charging stations, which is great news for companies like ChargePoint (NYSE:CHPT). After all, we can’t have millions of EVs on the roads, and not have anywhere to charge them.

“With the total cumulative investment in EV charging infrastructure in the United States and Europe expected to be $60 billion by 2030 and $192 billion by 2040, ChargePoint’s established business model, comprehensive portfolio for nearly every charging scenario today, recurring revenue and growing customer base demonstrate it is well positioned to continue to lead as the electric mobility revolution accelerates,” says the company.

Helping, the Biden Administration is committed to building a national network of 500,000 EV charging stations by 2030.

Earnings have been solid, too. Third-quarter revenue, for example, was up 93% to $125.3 million YoY. Networked charging systems revenue for the third quarter was $97.6 million, up 105% from $47.5 million YoY. Also, subscription revenue was $21.7 million, up 62% from $13.4 million YoY. For Q4 2022, CHPT expects revenue to fall in the range of $160 million to $170 million, which would be 108% above year-ago numbers.

Fidelity Electric Vehicles and Future Transportation ETF (FDRV)

Another hot EV ETF to consider is the Fidelity Electric Vehicles and Future Transportation ETF (BATS:FDRV). At $14.77, with an expense ratio of 0.39%, the ETF offers exposure to companies involved in the production of electric and/or autonomous vehicles, components and technology, and other companies that are working to change the future of transportation. Some of its top holdings include Nio (NYSE:NIO), Tesla, Qualcomm (NASDAQ:QCOM), Nvidia (NASDAQ:NVDA), Intel (NASDAQ:INTC), Aptiv and Garmin (NYSE:GRMN).

[Whitney Tilson: Gold 2.0 Tap Into the Most Lucrative Vein of the SWaB Revolution]

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

Read more from Ian Cooper at InvestorPlace.com

Filed Under: Electric Vehicles Tagged With: Albemarle, Batteries, ChargePoint, Electric Vehicles, Fidelity EVs and Future Transportation ETF (FDRV), Freeport McMoRan (FCX), Ian Cooper, Inflation, Krane Shares Electric Vehicles and Future Mobility (KARS), lithium, NIO, tesla

Five Most Promising Lithium Stocks for Investors to Buy and Hold

June 9, 2022 By admin Leave a Comment

In this Article

  • Sociedad Quimica y Minera de Chile (NYSE: SQM)
  • Albemarle (NYSE: ALB)
  • Lithium Americas (NYSE: LAC)
  • Livent (NYSE: LTHM)
  • Ganfeng Lithium (OTC: GNEN.F)

Whether you’re an ESG investor looking at renewable energy or a thematic investor following the global uptick in demand for renewable materials, lithium stocks have likely piqued your attention. There are more than a few options for lithium stocks to buy, which begs the question: which companies are best-positioned to give investors market-beating ROI?

If you’re considering which lithium stocks to buy in 2022, take the time to evaluate each company’s fundamentals, as well as its role in this high-demand market. Are you interested in companies that perform extraction? Midstream refinement organizations? Integrated lithium pure-play companies? It’s worth understanding what’s out there before diving into this market.

Below, you’ll find a list of the five most promising lithium stocks to buy right now, encompassing all aspects of the market. While they all take a different approach to generating profit, they all have one thing in common: lithium.

5. Sociedad Quimica y Minera de Chile (NYSE: SQM)

The world’s largest producer of lithium products is a no-brainer on this list. Not only does the world’s growing demand for lithium products solidify SQM’s spot among lithium stocks to buy right now, its financials are more than enough to justify a case for both short- and long-term investors.

The quarterly earnings growth for Sociedad Quimica y Minera de Chile is through the roof, registering 979.50% as of its latest earnings report. This is due in large part to its quarterly sales growth, which ticked up 282.20%. With an operating margin of 44.50% and sales of $4.35 billion, this company has firmly entrenched itself as one of the best lithium investments out there. Best of all? It’s price-to-earnings growth (PEG) is an attractive 0.54, with reasonable valuation across similar metrics.

[First Look: Love investing in disruptive new companies? Your shot at the next Tesla!]

4. Albemarle (NYSE: ALB)

Another of the world’s largest lithium suppliers, Albemarle is an attractive investment in this booming niche. The company’s five-year EPS outlook of 46.14% is attractive given the current economic climate, and it’s backed up by healthy sales growth of 36%. A low debt load and a very healthy operating margin of 26.50% open the company up to long-term stability: something more and more appealing to investors today.

The only real knock against Albemarle is an astronomical P/E of 102.25 and a PEG of 2.22. The company appears overvalued at its current share price, which can make it a tough position to open for those seeking value in the lithium space. Nonetheless, it’s an industry leader with very few direct competitors.

3. Lithium Americas (NYSE: LAC)

Lithium Americas has been on an upward trajectory since 2020 and shows no signs of slowing. The company peaked at nearly $40 per share in early April 2022, but has since retracted to the mid-$20 area, which is actually a good thing for serious investors. At current levels LAC is much more reasonably valued (though still on the high side).

Lithium Americas is currently laying the groundwork to become a big-time player in the lithium space, with operations in both North and South America. Its balance sheet might not look all that impressive today; however, it has an EPS outlook of more than 350% in the year ahead! While that’s an ambitious target for a company that has yet to post profitability, it’s not far off. Investors looking to roll the dice on a long-term lithium play will want to take a second look at LAC.

2. Livent (NYSE: LTHM)

Spun off from FMC (NYSE: FMC) in 2018 to create a lithium pure-play business, Livent is a very attractive player in the space right now. It’s one of the top lithium stocks to buy and one with a long runway ahead of it. The company is already profitable, reporting $54.6 million in income on $472.2 million in sales. Its sales are also on the rise, growing 56.50% over the last quarter. Low debt load makes it an even more attractive long-term play.

[Don't Miss: Click Here for Details on the Shocking New EV]

As is the case with other lithium stocks, Livent is wildly overvalued at current levels. It has a P/E of 112.38 and, more alarmingly, a PEG of 112.38. Its P/C is also at 70.04, signaling to investors that they’re paying a significant premium. Nevertheless, a share price below $30 is attractive enough to consider a starter position.

1. Ganfeng Lithium (OTC: GNEN.F)

Many investors are hesitant to invest in Chinese companies due to concerns about transparency and the looming threat of geopolitical tensions. That said, it’s difficult to find a more attractive lithium stock to buy than China’s largest lithium producer: Ganfeng Lithium. The company has done nothing but outperform, and its financials hold up to scrutiny.

In its most recent earnings report, Ganfeng Lithium posted $5.37 billion in revenue, resulting in more than $3.5 billion in net income: a 640% year-over-year increase. This is thanks to a 65% profit margin. The company’s five-year trendline paints a picture of the world’s growing dependence on lithium and this company’s ability to supply it to major buyers like Tesla (NASDAQ: TSLA). It’s one of the top companies in the world and a top lithium stock to buy and hold long-term.

Future Prospects of Best Lithium Stocks to Buy

Demand for raw materials is on the rise across virtually every sector, and lithium is a frontrunner in terms of viable applications and accompanying demand. The future is bright for lithium, and even brighter for the companies capable of supplying it to manufacturers. Take a closer look at any of the five companies above when it comes to investing in lithium for the long-term.

[Shocking: Tesla's Worst Nightmare? (Coming True Right Now)]

Want more information about the materials market and the role of metals like lithium in thematic investing trends? Check out the best investment newsletters and subscribe to any that pique your curiosity when it comes to following market demand. Today, lithium is the hot-ticket item; make sure you know what’s next.

The “Perfect Stock” is REAL

And it’s only around $3. But you’ve probably never heard of it before…

Because it trades under a SECRET name.

Find out more about this “Perfect Stock” right now.

Read more from Leanna Kelly at InvestmentU.com

Filed Under: Energy Storage Tagged With: Albemarle, Batteries, electric vehicle, energy storage, ESG, FMC, Ganfeng Lithium, International, lithium, Lithium Americas, Livent, Sociedad Quimica y Minera de Chile, tesla

Primary Sidebar

Popular Posts

Topics

Advertorial Alex Koyfman Alternative Energy amazon artificial intelligence Batteries Battery BEP BP Charging Stations China clean energy climate change Creative electric vehicle Electric Vehicles elon musk energy storage ETFs ev battery global oil demand Graphene Grid Inflation International Jeff Brown lithium natural gas NIO Nomi Prins Nuclear energy oil and gas renewable energy renewables Russia Solar Supply Chain tesla tsla Ukraine Uranium utilities Whitney Tilson wind power xom

Copyright © 2023 · Clean Energy Sector - Profiting from the Global Energy Transformation

 

Nothing on this website should be considered personalized financial advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security.

 

Clean Energy Sector, its managers, its employees, affiliates and assigns (collectively "The Company") do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above.

 

The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. The Company is not affiliated with, nor does it receive compensation from, any specific security.

 

To the maximum extent permitted by law, the Company disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations provided herein prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

 

About Us | How it Works | Privacy Policy | Terms and Conditions | Contact Us