10 Best Penny Stocks To Buy According to the Media

6. Arcadium Lithium plc (NYSE:ALTM)

Number of Hedge Fund Holders: 21

Arcadium Lithium plc (NYSE:ALTM) is a leading global lithium-producing company that was formed after the merger of Allekm and Livent, two major lithium-producing companies, in 2023. The company is involved in the extraction of lithium via hard-rock mining, brine extraction, and Direct Lithium Extraction (DLE). The company also produces battery-grade lithium hydroxide, lithium carbonate and other specialty lithium products, which have essential applications in electric vehicles, primary batteries, greases, pharmaceuticals, polymers, and aerospace.

Arcadium Lithium plc (NYSE:ALTM) posted a successful first quarter achieving $261 million in revenue and $109 million in adjusted EBITDA, reflecting strong performance despite production challenges. The company is also on track to improve its cost savings. Management expects cost savings of $60 to $80 million in 2024, mainly through a reduction in workforce and operating expenses. What truly sets Arcadium Lithium plc apart from its competitors is its robust portfolio of lithium products emerging from the merger of two established lithium players.

Arcadium Lithium plc (NYSE:ALTM) is on track to capitalize on the increase in demand for lithium arising from electric vehicles. Global sales of EVs were up by 20% during the first quarter, moreover, as per the IEA’s figures, the number of EVs sold in the first quarter of 2024 alone was equal to the total number of EVs sold in 2020. With almost three-quarters of Arcadium Lithium plc’s (NYSE:ALTM) total revenue coming from its lithium hydroxide and lithium carbonate businesses, the global nature of its operations puts it in a sweet spot to capitalize on the growing demand for lithium products. ALTM is an investors’ favorite and was held by 21 hedge funds in Q1 2024, with total stakes worth $66.786 million. Analysts are also bullish on the stock and see a 50% upside from current levels.