10 Best Battery Stocks To Buy Now According to Short Sellers

2. Ultralife Corporation (NASDAQ:ULBI)

Short Interest as % of Shares Outstanding: 1.52%

Number of Hedge Fund Holders: 11

One of the best battery stocks, Ultralife Corporation (NASDAQ:ULBI) is a New York-based company that specializes in the design and manufacture of innovative battery solutions and communication systems. The company provides products and services across various sectors, including government and defense, medical, safety and security, energy, and robotics.

The company’s operations are divided into two main segments, battery and energy products, which feature a wide range of advanced lithium-based batteries, and communications systems, which are engineered to meet the demanding requirements of military and defense applications worldwide. We last covered Ultralife (NASDAQ:ULBI) in April 2023 in our article about the best EV stocks under $10, when the stock was trading under $4. Since then, the company stock has returned nearly 165%, as of August 30.

Despite that, Ultralife (NASDAQ:ULBI) stock is still trading at a forward price-to-earnings ratio of 13.76, at a nearly 31% discount to its industry average. The company has been outperforming the analyst estimates for the last 3 quarters and is expected to grow its EPS by over 43% in 2024.

In the second quarter, the company reported an EPS of $0.22 and generated revenues of $43 million. The company is experiencing solid revenue growth, especially in its Battery & Energy Products segment, which is crucial as the demand for advanced battery solutions in defense and medical markets continues to rise. In the most recent quarter, this segment reached its highest revenue level, driven by a 30.5% increase in government defense sales and a 20.1% rise in medical market sales.

The company’s ability to generate solid cash flow also allowed it a substantial reduction in debt by over 50% by Q2, which positions Ultralife (NASDAQ:ULBI) with a stronger balance sheet and lower interest expenses moving forward. Despite the decline in sales within the Communications Systems segment due to previous supply chain disruptions, the company’s overall gross profit margin increased to 26.9%, up from 24.8% in the previous year, which shows the company’s strength in its operations and its focus on profitability.

In the second quarter, 11 hedge funds had stakes worth $6.4 million in Ultralife (NASDAQ:ULBI). As of June 30, Renaissance Technologies is the company’s largest shareholder with 242,490 shares worth $2.575 million.