5 Best Lithium and Battery Stocks To Buy

2. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 39

Albemarle Corporation (NYSE:ALB) is an American specialty chemicals company that generates most of its revenue from lithium manufacturing. According to the Insider Monkey database, 39 hedge funds had a stake in the company in Q2 2022. Marshall Wace LLP held the most prominent position in the quarter ending June 30, with shares worth $154.5 million.

Albemarle Corporation (NYSE:ALB) management expects its lithium sales to jump from 110,000 tons in 2021 to 250,000 tons in 2026. The rise in sales will be owed to the completion of the La Negra brine in Chile and Kemerton II in Australia. Moreover, the acquisition of the Qinzhou plant in China is also expected to play a significant role as it has the capacity to produce 25,000 metric tons of LCE. The plant is capable of producing battery-grade lithium carbonate and lithium hydroxide. Additionally, Albemarle Corporation (NYSE:ALB) has plans to expand to Silver Peaks in Nevada.

In Q2 2022, Albemarle Corporation (NYSE:ALB) posted an EPS of $3.45, outperforming the estimates by 14% and representing an increase of 89% on a YoY basis. The revenue of $1.48 billion was slightly above consensus, showing a growth of 91.2% from Q2 2021. In light of the strong results, Albemarle Corporation (NYSE:ALB) raised its net-sales guidance for FY 2022 from $5.8 billion-$6.2 billion to $7.1 billion-$7.5 billion. On top of that, the management expects its 2022 adjusted diluted EPS to be $19.25-$22.25, compared to the prior outlook of $12.30-$15.00.

Here is what Carillon Tower Advisers had to say about Albemarle Corporation in its Q3 2021 investor letter:

“Albemarle is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The firm’s shares outperformed in the quarter, driven largely by the current robust demand environment for lithium used in the manufacturing of electric vehicle batteries. As the global push towards the reduction of carbon emissions continues to gain steam, Albemarle is well positioned to benefit from the accelerating adoption of electric vehicles.”