10 Worst ADR Stocks To Buy According to Short Sellers

1. Lifezone Metals (NYSE:LZM)  

Short Interest as % of Shares Outstanding: 18.45%  

Number of Hedge Fund Investors in Q2 2024: 10

Lifezone Metals (NYSE:LZM) is a mining and metals refining company headquartered in the United Kingdom. The company focuses on the production of critical metals. Lifezone Metals (NYSE:LZM) is known for its Hydromet Technology, which is a method that has the potential to replace smelting for base and precious metals refining.

Lifezone Metals (NYSE:LZM) operates the Kabanga Nickel Project in Tanzania which is one of the largest and highest-grade nickel sulfide deposits in the world. On July 23, Lifezone Metals (NYSE:LZM) produced its first nickel, copper, and cobalt from the Kabanga nickel project and the metals were processed at the company’s Simulus laboratory in Australia during a pilot test of its refinery system.

According to a report by Precedence Research, the global nickel market was valued at $41.62 billion in 2024 and is expected to reach around $83.77 billion by 2034, expanding at a CAGR of 7.25%. Similarly, the cobalt industry is projected to grow at a CAGR of 6.00% from $17.80 billion in 2024 to $28.38 billion by 2032. The global market for nickel, copper, and cobalt is driven by the expanding demand for electric vehicles, renewable energy projects, and other technologies.

Lifezone Metals’ (NYSE:LZM) stake in the Kabanga Nickel Project in Tanzania and its proven refining capabilities make it strategically well-positioned to benefit from this rising demand for critical metals. The company’s pilot plant’s performance has exceeded expectations, the refinery, once operational, will serve as a critical hub for refining metals from the Kabanga Nickel Project.

While 18.45% of the company’s shares are shorted, 10 hedge funds have maintained a bullish sentiment on the stock as of the second quarter with stakes worth $32.60 million. Industry analysts maintain a consensus Buy rating, with an average price target of $14.33, representing almost 70% upside potential from its current levels.

While we acknowledge the potential of Lifezone Metals (NYSE:LZM) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LZM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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