In this article, we will take a look at 5 of the best lithium stocks to buy now. To go through our analysis of the lithium industry and its impacts on the battery and EV sectors, go directly to the 13 Best Lithium Stocks To Buy Now.
5. Sensata Technologies Holding plc (NYSE:ST)
Number of Hedge Fund Holders: 28
Sensata Technologies Holding plc (NYSE:ST) is an engineering technology company specializing in the sale of sensors and related products for automobiles and aircraft. The company also provides battery management systems designed to evaluate battery charge rates, performance, and various parameters.
In Q3 2023, Sensata Technologies Holding plc (NYSE:ST) demonstrated strong financial performance, achieving an adjusted EPS of $0.91. This marked a significant increase compared to the previous year, surpassing market expectations. However, despite the positive earnings, the company experienced a slight decrease in revenues by 1.7% to $1,001.3 million. On the other hand, its Performance Sensing revenues saw a 2% increase, while Sensing Solutions’ operating income was impacted by slower growth in industrial revenue. The heavy vehicle off-road business reported a decline in organic revenue growth, offset by growth in the automotive and aerospace sectors.
In the third quarter of the current year, 28 out of the 910 hedge funds in Insider Monkey’s database held a stake in Sensata Technologies Holding plc (NYSE:ST). The largest investor among them is Robert Joseph Caruso’s Select Equity Group, owning 6.62 million shares valued at $250.67 million.
4. FMC Corporation (NYSE:FMC)
Number of Hedge Fund Holders: 30
Founded in 1883 in Philadelphia, Pennsylvania, FMC Corporation (NYSE:FMC) has evolved from its origins as an insecticide producer into a diversified chemical manufacturing enterprise. The company is renowned for its pioneering contributions to the development and production of alkyllithiums, aryllithiums, lithium amides, lithium alkoxides, and lithium metal hydrides. These compounds play a vital role as reducing agents in the synthesis of pharmaceutical and agricultural intermediates.
On October 16, Kevin McCarthy, an analyst at Vertical Research, upgraded FMC Corporation (NYSE:FMC)’s stock from Hold to Buy, setting a price target of $94. While expressing caution for the remainder of the current year, McCarthy anticipates a stabilization of market conditions in 2024.
By Q3 2023 end, 30 out of the 910 hedge funds profiled by Insider Monkey had bought and owned the firm’s shares. FMC Corporation (NYSE:FMC)’s largest hedge fund investor was Israel Englander’s Millennium Management due to its $108 million investment.
3. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 37
Albemarle Corporation (NYSE:ALB) is a specialty chemicals manufacturing company headquartered in Charlotte, North Carolina. The company operates through three main divisions: lithium, bromine specialties, and catalysts. Albemarle emerged as the leading supplier of lithium for electric vehicle batteries by the year 2020.
At the end of Q3 2023, 37 hedge funds were bullish on Albemarle Corporation (NYSE:ALB), revealing holdings valued at $274.3 million. The overall hedge fund sentiment for the stock is positive. Philippe Laffont’s Coatue Management stands out as one of the top investors in Albemarle Corporation (NYSE:ALB), with stakes worth $100.5 million as of the third quarter.
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 66
General Motors Company (NYSE:GM) is a prominent multinational automotive corporation engaged in the manufacturing and global sale of trucks, crossovers, cars, and automotive parts and accessories. The company oversees major brands such as Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling. In August of 2023, General Motors Company (NYSE:GM) announced its leadership in a $60 million investment in Mitra Chem, a two-year-old company based in Mountain View, California. Mitra Chem specializes in utilizing artificial intelligence to expedite the development of lithium-ion battery materials. This collaboration aims to assist GM in advancing iron-based cathode active materials, including lithium manganese iron phosphate (LMFP), for potential use in some of GM’s next-generation Ultium batteries post-2025.
In Q3 2023, General Motors Company (NYSE:GM) showcased a robust quarterly performance. Its revenue experienced a 5% year-over-year increase, reaching $44.1 billion, while net income, although down by 7% year-over-year, amounted to $3.1 billion. The company surpassed consensus estimates for EPS by $0.37, reporting quarterly figures of $2.20. Following the earnings release, RBC Capital analyst Tom Narayan increased the price target for General Motors Company (NYSE:GM) shares to $48 from $47, maintaining an ‘Outperform’ rating.
By the close of the third quarter of this year, 68 out of 910 hedge funds tracked by Insider Monkey’s database had also invested in General Motors Company (NYSE:GM) shares. The largest investor is Natixis Global Asset Management’s Harris Associates, with a substantial $1.17 billion investment.
Patient Capital Opportunity Equity Strategy made the following comment about General Motors Company (NYSE:GM) in its Q2 2023 investor letter:
“We like other names mostly ignored by the market for similar reasons. Names like Expedia (EXPE), General Motors Company (NYSE:GM), and Delta Air Lines. These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 81
Based in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA) is a multinational American company specializing in electric vehicles and clean energy solutions. Tesla is widely recognized for its innovative designs and manufacturing of electric cars, as well as stationary battery energy storage solutions for both household and grid-scale applications. The company also produces solar panels, solar shingles, and related products and services.
In the third quarter of 2023, Tesla, Inc. (NASDAQ:TSLA) achieved the production of 430,488 vehicles and delivered over 435,000 vehicles. Tesla operates six manufacturing facilities globally, including its original plant in California and gigafactories in Nevada, New York, Shanghai, Texas, and Berlin.
According to Insider Monkey’s third-quarter database, 81 hedge funds expressed a positive outlook on Tesla (NASDAQ:TSLA), representing an increase from the 79 funds in the previous quarter. Notably, Catherine D. Wood’s ARK Investment Management stands out as a significant shareholder for the quarter, holding a stake valued at $1.02 billion.
Here’s what Baron Funds said about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text).
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