10 Best Specialty Chemical Stocks To Buy Now

6. Arcadium Lithium plc (NYSE:ALTM)

Upside Potential: 107%

Number of Hedge Funds Holders: 19

Arcadium Lithium plc (NYSE:ALTM) is engaged in the production of lithium chemical products. It offers lithium oxide, lithium carbonate, and high purity lithium metal for pharmaceutical, battery, electronics, polymers, and aerospace applications.

The company has recently announced the acquisition of Li Metal’s Lithium metal business including a pilot production facility in Canada. This acquisition will help the company enhance its production capabilities and meet the demand for the next-generation battery materials. The acquisition is worth $11 million, paid entirely in cash.

In the second quarter of 2024, Arcadium Lithium plc (NYSE:ALTM) posted revenue of $255 million with a net income of $85.7 million. Total volumes increased in the second quarter due to higher sales of hydroxides and carbonates. However, spodumene registered declining sales on account of reduced production at Mt. Cattlin.

Although the average realized price for spodumene was higher sequentially, it was lower for the other products. The decline was primarily driven by lower prices of lithium chemicals, changes in customers and product mix, and lagging effect of market indices on volumes on hydroxide and carbonate volumes.

The company plans to achieve cost savings at the higher end of its $60 million to $80 million guidance range. Organizational restructuring, operational savings and elimination of third-party services have driven these savings.

Moreover, Arcadium Lithium plc (NYSE:ALTM) projects a 25% increase in combined lithium hydroxide and lithium carbonate volumes for the full year 2024, due to major expansions. In addition to the completed expansions, the company plans to reduce capital spending by $500 million over the next 24 months. This reduction comes from deferring investments in two of four expansion projects due to the surplus lithium supply from Indonesia and China.

Following the recently completed acquisition and strong financials, 19 hedge funds have invested a total of $51 million in the stock. Moreover, 11 analysts have forecasted an upside potential of 107% for the share price, placing it among the 10 Best Specialty Chemical Stocks To Buy Now.