In this article, we discuss the 5 best lithium stocks to buy now. If you want to see more stocks in this list, head to 10 Best Lithium Stocks to Buy Now.
5. Piedmont Lithium Inc. (NASDAQ:PLL)
Number of Hedge Fund Holders: 11
Piedmont Lithium Inc. (NASDAQ:PLL) is an American company that explores and develops lithium projects. The company owns two properties in North Carolina that cover thousands of acres in the area. It is headquartered in Belmont, North Carolina.
An often under appreciated fact about Piedmont Lithium Inc. (NASDAQ:PLL) is that it has an agreement with a Canadian company to buy Lithium from a Canadian mine at a rate of $900 per metric tonne. This is significantly below current market prices for the mineral and stands to provide it with significant gross profit especially as current market prices are high due to EV demand and Chinese uncertainty. This facility, which is located in Abitibi, Quebec, is slated to enter production in the first quarter of next year.
Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 11 had invested in Piedmont Lithium Inc. (NASDAQ:PLL). Cowen kept a $90 share price target for the company in June 2022, stressing that the company has significant potential to grow its operations in the U.S.
4. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 24
Rio Tinto Group (NYSE:RIO) is a diversified metals miner that focuses its attention on a wide variety of materials. These include lithium, gold, copper, diamonds, titanium oxide, and others. The firm is headquartered in London, United Kingdom.
Rio Tinto Group (NYSE:RIO) is the third largest mining company in the world and the firm has beat analyst revenue estimates since 2017. Additionally, the firm has a forward price to earnings ratio of 6.1, which is below its normal P/E ratio of 10.3, indicating that there is a lot of juice in the stock. The company also generated a strong 48% of its EBITDA as free cash flows last year, for a very cash healthy performance. Finally, Rio Tinto Group (NYSE:RIO) also has an annual dividend of $16 for a 9% yield.
24 of the 895 hedge funds polled by Insider Monkey for their June quarter of 2022 holdings had held a stake in the company.
Rio Tinto Group (NYSE:RIO)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 14.8 million shares that are worth $905 million.
3. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)
Number of Hedge Fund Holders: 29
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) manufactures and sells several kinds of chemicals which also include lithium and its derivatives. Its lithium products serve several industries such as the battery, glass, and ceramic manufacturers. The firm is headquartered in Santiago, Chile.
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is one of the largest lithium suppliers in the world, as it commands a 25% market share. The firm also has some of the longest lasting reserves out there, with the life of its reserves estimated to be at 20+ years. Additionally, 70% of the company’s lithium volumes have been contracted at current spot prices, managing to insulate it from future price drops. Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is also slated to grow its volume by 37% annually in the second half of this year.
Deutsche Bank raised Sociedad Química y Minera de Chile S.A. (NYSE:SQM)’s share price target to $115 from $105 in August 2022, sharing that the stock has a significant upside. Insider Monkey scanned 895 hedge fund portfolios for Q2 2022 and discovered that 29 owned the company’s shares.
Out of these, Paul Marshall and Ian Wace’s Marshall Wace LLP is Sociedad Química y Minera de Chile S.A. (NYSE:SQM)’s largest investor through a $147 million stake that comes via 1.7 million shares.
2. Livent Corporation (NYSE:LTHM)
Number of Hedge Fund Holders: 30
Livent Corporation (NYSE:LTHM) is an American company that makes and provides lithium compounds for performance specific applications and uses. These include batteries, polymers, pharmaceutical products, and aerospace applications. It is headquartered in Philadelphia, Pennsylvania.
Livent Corporation (NYSE:LTHM) aims to more than triple its lithium production capacity by 2030, and as you’ll find out in our industry introduction in the first part of this post, the industry is slated for strong growth until this time period, allowing the company to capitalize the growth. Its lithium carbonate capacity at kilotons per annum is estimated to sit at 20 kpa by the end of this year and grow to 100 kpa by 2030 end.
CICC set an Outperform share price rating and a $27.30 share price target for Livent Corporation (NYSE:LTHM) in August 2022. 30 of the 895 hedge funds polled by Insider Monkey during this year’s second quarter had invested in the company.
Livent Corporation (NYSE:LTHM)’s largest investor is Robert Karr’s Joho Capital which owns 3.9 million shares that are worth $89 million.
1. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 39
Albemarle Corporation (NYSE:ALB) is a specialty chemical manufacturer and seller headquartered in Charlotte, North Carolina, United States. The company offers several different kinds of lithium compounds that are used in a wide variety of applications.
Albemarle Corporation (NYSE:ALB)’s latest quarter saw it grow its revenues annually by 91%, as it beat Wall Street estimates. Out of these, lithium accounted for 60%, growing over 2021 when it accounted for 42% of the overall revenues. During the same time period, the company’s lithium sales increased by 178% annually, with volumes growing by 18%. Finally, by the end of this year, Albemarle Corporation (NYSE:ALB)’s expects its operating income to grow by as much as 300% annually.
Deutsche Bank increased Albemarle Corporation (NYSE:ALB)’s share price target to $270 from $255 in August 2022, sharing that the second quarter results were impressive. Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 39 had bought the company’s shares.
Paul Marshall and Ian Wace’s Marshall Wace LLP is Albemarle Corporation (NYSE:ALB)’s largest investor. It owns 739,388 shares that are worth $154 million.
Disclosure: None. You can also take a look at 10 High Dividend Stocks to Shore Up Your Cash Position Before Recession Begins and Best Defensive Stocks Under $50.
