In this article, we discuss the 5 best lithium and phosphate stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Lithium and Phosphate Stocks to Buy Now.
5. Albemarle Corporation (NYSE: ALB)
Number of Hedge Fund Holders: 31
Albemarle Corporation (NYSE: ALB) makes and sells specialty chemicals. It is headquartered in North Carolina and is ranked fifth on our list of 10 best lithium and phosphate stocks to buy now. Some of the lithium compounds it sells include lithium carbonate, lithium hydroxide, lithium chloride, and lithium aluminum hydride, among others. The company beat market expectations on earnings per share and revenue for the second quarter. It has a market cap of more than $26 billion and posted $3 billion in revenue last year.
On August 6, investment advisory BMO Capital maintained an Outperform rating on Albemarle Corporation (NYSE: ALB) stock and raised the price target to $250 from $205, noting that the firm could double lithium volume by 2025.
At the end of the first quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $262 million in Albemarle Corporation (NYSE: ALB), up from 21 the preceding quarter worth $126 million.
4. FMC Corporation (NYSE: FMC)
Number of Hedge Fund Holders: 32
FMC Corporation (NYSE: FMC) is placed fourth on our list of 10 best lithium and phosphate stocks to buy now. The company markets crop protection chemicals and is based in Pennsylvania. Lithium and phosphate compounds are used in many products that the firm makes and sells. The firm was founded in 1883 and has a market cap of more than $12 billion. In earnings results for the second quarter, posted on August 3, the firm reported a revenue of $1.2 billion, up 6% year-on-year and beating estimates by $10 million.
On August 5, investment advisory Wells Fargo maintained an Overweight rating on FMC Corporation (NYSE: FMC) stock but lowered the price target to $115 from $133, noting that the 2021 outlook was discounted into the shares and the firm was feeling inflationary pressure.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm DE Shaw is a leading shareholder in FMC Corporation (NYSE: FMC) with 1 million shares worth more than $116 million.
3. Nutrien Ltd. (NYSE: NTR)
Number of Hedge Fund Holders: 33
Nutrien Ltd. (NYSE: NTR) is ranked third on our list of 10 best lithium and phosphate stocks to buy now. The firm is based in Canada and provides crop-related services. The firm is especially famous for phosphate products and sells these through 2,000 different retail stores in the United States, Canada, South America, and Australia. It has a market cap of over $33 billion and posted more than $20 billion in revenue last year. It was founded in 2017 and employs more than 23,000 people.
On July 8, investment advisory RBC Capital reiterated an Outperform rating on Nutrien Ltd. (NYSE: NTR) stock and raised the price target to $69 from $63, saying the company was benefiting from a strong environment and higher prices.
At the end of the first quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $895 million in Nutrien Ltd. (NYSE: NTR), up from 25 in the preceding quarter worth $754 million.
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Nutrien Ltd. (NYSE: NTR) was one of them. Here is what the fund said:
“For the most part, performance of the stocks within the Income-Equity Strategies was skewed towards the high-performing market sectors with two exceptions – our consumer discretionary and technology stocks both did better than their broad market peers… We bought Nutrien (NTR), a producer of fertilizer, which we believe should benefit from increasing crop prices.”
2. Johnson Controls International plc (NYSE: JCI)
Number of Hedge Fund Holders: 41
Johnson Controls International plc (NYSE: JCI) is an Irish firm that markets heating, ventilating, air conditioning, controls, and refrigeration solutions. It is placed second on our list of 10 best lithium and phosphate stocks to buy now. The firm has recently stepped up investments in the lithium business, collaborating with Japanese firm Toshiba to ink an agreement for the development and sale of low-cost lithium batteries to EV makers. The firm has a market cap of over $51 billion and posted more than $22 billion in revenue last year.
On August 4, investment advisory HSBC kept a Hold rating on Johnson Controls International plc (NYSE: JCI) stock but raised the price target to $66 from $52, underlining that the firm was expected to see order growth in the third quarter.
At the end of the first quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Johnson Controls International plc (NYSE: JCI), up from 34 in the preceding quarter worth $795 million.
1. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Fund Holders: 62
Tesla, Inc. (NASDAQ: TSLA) is a firm that makes and sells electric vehicles and clean energy equipment. It is headquartered in California and is ranked first on our list of 10 best lithium and phosphate stocks to buy now. As the largest EV firm in the world, the firm consumes a lot of EV batteries that use lithium compounds. A recent statement by the CEO of the firm, Elon Musk, affirmed that the EV maker was planning a long-term future of lithium batteries. The firm beat market expectations on earnings per share and revenue in the second quarter.
On August 3, investment advisory Piper Sandler maintained an Overweight rating on Tesla, Inc. (NASDAQ: TSLA) stock with a price target of $1,200, noting the encouraging delivery results posted by the firm earlier and EV demand rising across the globe.
At the end of the first quarter of 2021, 62 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc. (NASDAQ: TSLA), down from 68 in the previous quarter worth $12 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
You can also take a peek at 10 Best Silver Mining Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
