In this article, we will look at 5 best lithium stocks to buy now. If you want to read about how and why lithium prices are skyrocketing, you can go to 10 Best Lithium Stock To Buy Now.
5. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 22
Rio Tinto Group (NYSE:RIO) engages in exploring, mining, and processing mineral resources worldwide. The company offers aluminum, copper, diamonds, gold, iron ore, and lithium among others. As of April 25, the stock has a PE ratio of 5.50, offers a forward yield of 11.77%, and on top of this, has appreciated in value by 7.28% over the past six months. This makes Rio Tinto Group (NYSE:RIO) rank high among the best lithium stocks to buy now because it is a high-momentum value stock pick that offers a handsome dividend.
Late last December, Rio Tinto Group (NYSE:RIO) announced plans to acquire the Rincon lithium project in Argentina from Rincon Mining for $825 million. The company is constantly making efforts to invest in battery technology and lithium projects and has made achieving carbon neutrality a part of its mission statement. Moreover, on April 19, RBC Capital analyst Tyler Broda raised his price target on Rio Tinto Group (NYSE:RIO) to 5,600 GBp from 5,300 GBp and reiterated a Sector Perform rating on the shares.
Rio Tinto Group (NYSE:RIO) is rising in popularity among elite hedge funds. By the end of Q4 2021, 22 hedge funds were long Rio Tinto Group (NYSE:RIO) with collective stakes of $1.83 billion. This is compared to 20 hedge funds in the third quarter of 2021 with stakes of $1.33 billion.
As of December 31, 2021, Fisher Asset Management is the most prominent shareholder in Rio Tinto Group (NYSE:RIO), having stakes of $907.2 million which covers 0.5% of Ken Fisher’s hedge fund portfolio.
4. Chemical & Mining Co Of Chile Inc (NYSE:SQM)
Number of Hedge Fund Holders: 24
Chemical & Mining Co Of Chile Inc (NYSE:SQM) produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals, and other products and services. This March, the company reported market-beating earnings for the fiscal fourth quarter of 2021. Chemical & Mining Co Of Chile Inc (NYSE:SQM) generated revenues of $1.08 billion, up 111.04% year over year, and beat estimates by $114.17 million. The company registered an EPS of $1.13, and beat EPS estimates by $0.20.
As of April 26, 2022, Chemical & Mining Co Of Chile Inc (NYSE:SQM) has gained 30.31% over the past twelve months, has a trailing twelve-month dividend yield of 2.63%, and also appears to be undervalued, with a forward price-to-earnings ratio of 12.40.
Chemical & Mining Co Of Chile Inc (NYSE:SQM) is becoming a prominent name in the lithium sector and is attracting bullish views from analysts and investors alike. On April 4, Deutsche Bank analyst Corinne Blanchard raised her price target on Chemical & Mining Co Of Chile Inc (NYSE:SQM) to $98 from $91 and maintained a Buy rating on the shares.
Insider Monkey found Chemical & Mining Co Of Chile Inc (NYSE:SQM) present on 24 hedge fund portfolios at the close of Q4 2021. The total stakes of these funds came to $294.26 million, up from $211.67 million in the prior quarter with 26 positions.
Marshall Wace LLP upped its Q3 stakes in Chemical & Mining Co Of Chile Inc (NYSE:SQM) by 2945% in the fourth quarter of 2021. The fund’s stakes in the company were valued at $89.36 million at the end of last December, making it the most prominent shareholder in Chemical & Mining Co Of Chile Inc (NYSE:SQM).
3. QuantumScape Corporation (NYSE:QS)
Number of Hedge Fund Holders: 26
QuantumScape Corporation (NYSE:QS) makes solid-state lithium-metal batteries that are used to power electric vehicles. The company is becoming a go-to battery provider for prominent names in the EV industry and is therefore ranked high among the best lithium stocks to buy now. This March, the company reported that it has signed an agreement with its fourth automotive original equipment manufacturer. The unannounced OEM will be collaborating with QuatumScape Corporation (NYSE:QS) to validate and test its solid-state battery cells to integrate them into pre-production prototype vehicles and ultimately into mass production commercial vehicles. On March 28, it was revealed that QuatumScape Corporation (NYSE:QS) will be working with German luxury and high-performance carmaker Porsche to power Porsche’s EVs such as the electric 911 with its solid-state batteries.
This April, Deutsche Bank analyst Emmanuel Rosner initiated coverage of QuantumScape Corporation (NYSE:QS) with a Hold rating and a $20 price target. The analyst said that the company is exhibiting growth potential and is actively involved in bettering its solid-state lithium metal battery technology, making it gain popularity in the automobile industry.
Insider Monkey was able to identify 26 hedge funds that held long positions in QuantumScape Corporation (NYSE:QS) at the end of the fourth quarter of 2021. The total stakes of these funds were valued at $157.08 million. This is compared to 25 positions in the previous quarter with stakes worth $197 million.
As of the end of last December, JS Capital is the dominating shareholder in QuantumScape Corporation (NYSE:QS). The fund owns more than 2 million shares of stock which equate to stakes of $45.15 million.
2. Livent Corporation (NYSE:LTHM)
Number of Hedge Fund Holders: 28
Livent Corporation (NYSE:LTHM) manufactures and sells performance lithium compounds primarily used in lithium-based batteries, specialty polymers, and chemical synthesis applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This February, Livent Corporation (NYSE:LTHM) reported earnings for the fiscal fourth quarter of 2021 in which it beat both EPS and revenue estimates. The company reported revenues of $122.90 million, up 49.51% year over year, and outperformed market consensus by $16.63 million. Moreover, the company’s earnings per share came to $0.08, beating EPS estimates by $0.01.
This February, BofA analyst Matthew DeYoe upgraded Livent Corporation (NYSE:LTHM) to Neutral from Underperform. The analyst believes that despite the stock having plummeted by 29% from November highs, the market for lithium is improving which will drive the growth of lithium stocks. Livent Corporation (NYSE:LTHM) is experiencing bullish trading volumes and as of April 26, 2022, the stock has gained 12.00% over the past twelve months, making it the second-best lithium stock to buy now.
Livent Corporation (NYSE:LTHM) is gaining popularity among investor circles. By the end of the fourth quarter of 2021, 28 hedge funds were long Livent Corporation (NYSE:LTHM) with stakes worth $289.14 million. This is compared to 27 hedge funds in the third quarter of 2021 with stakes of $277.43 million. The hedge fund sentiment for Livent Corporation (NYSE:LTHM) is positive.
As of December 31, 2021, Joho Capital is the largest shareholder in Livent Corporation (NYSE:LTHM) owning more than 4.2 million shares of stock which equate to a stake value of $104.17 million.
1. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 48
Albemarle Corporation (NYSE:ALB) develops, manufactures, and markets engineered specialty chemicals worldwide. The company operates through three business segments: Lithium, Bromine, and Catalysts. This January, Albemarle Corporation (NYSE:ALB) announced that it has entered into a strategic partnership with 6K, a microwave-controlled plasma technology company, to develop novel lithium battery materials through potentially disruptive manufacturing processes.
Moreover, on February 9, Albemarle Corporation (NYSE:ALB) announced plans to expand its lithium joint venture with Mineral Resources, the MARBL Joint Venture. The agreement between the two gives 50% interest in the Wodgina mine to Albemarle Corporation (NYSE:ALB), and 50% interest in the Kemerton lithium plant. Albemarle Corporation (NYSE:ALB) will remain the exclusive marketer of lithium products for the ventures.
On February 16, Albemarle Corporation (NYSE:ALB) reported market-beating earnings for the fiscal fourth quarter of 2021. The company reported an EPS of $1.01, beating estimates by $0.02. The company generated revenues of $894.20 million and outperformed market consensus by $2.65 million. Albemarle Corporation (NYSE:ALB) is a prominent name in the lithium space and is also exhibiting high momentum. As of April 26, 2022, the stock has gained 13.34% over the past twelve months.
On April 5, KeyBanc analyst Aleksey Yefremov raised his price target on Albemarle Corporation (NYSE:ALB) to $198 from $163 and maintained an Underweight rating on the shares. The stock is attracting bullish views from analysts and investors and is the best lithium stock to buy in 2022. Insider Monkey found that by the end of the fourth quarter of 2021, 48 hedge funds were long Albemarle Corporation (NYSE:ALB) with stakes of $505.75 million. This is compared to 38 hedge funds in the previous quarter with stakes of $317.87 million. The hedge fund sentiment for the stock is positive.
As of December 31, 2021, Marshall Wace LLP is the lead shareholder in Albemarle Corporation (NYSE:ALB), having stakes of over $94 million which represents 0.17% of Marshall Wace LLP’s Q4 2021 investment portfolio.
Carillon Tower Advisers, an investment management firm, published its third-quarter 2021 investor letter in which it mentioned Albemarle Corporation (NYSE:ALB). Here is what the firm said:
“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.”
You can also take a look at 11 Best Battery Stocks to Buy Now and 10 Cheap Lithium and Battery Stocks to Invest In.
