In this article, we will take a look at the 10 best rare earth stocks and ETFs. To see more such companies, go directly to 14 Best Rare Earth Stocks and ETFs.
5. Livent Corporation (NYSE:LTHM)
Number of Hedge Fund Holders: 31
Livent Corporation (NYSE:LTHM) is one of the best rare earth stocks to buy according to hedge funds. In August Livent Corporation (NYSE:LTHM) posted second quarter results which were below estimates. EPS in the second quarter came in at $0.43 missing estimates by $0.03. Revenue in the quarter jumped 7.8% year over year to $235.8 million, missing estimates by $15.76 million.
Insider Monkey’s database of 910 hedge funds shows that 31 funds had stakes in Livent Corporation (NYSE:LTHM).
Carillon Eagle Small Cap Growth Fund made the following comment about Livent Corporation (NYSE:LTHM) in its Q4 2022 investor letter:
“Livent Corporation (NYSE:LTHM) is a pure-play, fully integrated producer of performance lithium compounds. The stock underperformed amid investor concerns about how a potential decelerating rate of growth in overall electric vehicle (EV) production and demand, primarily in China, would affect the future price of lithium. Despite these potential near-term headwinds, longer-term the global lithium market remains tight, and we believe Livent plays a critical role in the battery value chain and remains well- positioned for the overall continued global adoption of EVs.”
4. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 34
Alcoa Corporation (NYSE:AA) is a bauxite, alumina, and aluminum products company. Insider Monkey’s database of hedge funds updated as of the second quarter shows that 34 hedge funds had stakes in Alcoa Corporation (NYSE:AA). The biggest stakeholder of Alcoa Corporation (NYSE:AA) during this period was Patrick Degorce’s Theleme Partners which had a $144 million stake in the company.
Alcoa Corporation (NYSE:AA) posted a narrower than expected loss in the second quarter.
3. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 41
Albemarle Corporation (NYSE:ALB) shares in August jumped after the company posted strong Q2 results and also upped its full-year earnings guidance, citing rising prices and volumes for lithium. Net income in the quarter jumped to $650 million from $406.8 million in the same quarter last year.
A total of 41 hedge funds out of the 910 hedge funds tracked by Insider Monkey were long Albemarle Corporation (NYSE:ALB). The most significant stakeholder of Albemarle Corporation (NYSE:ALB) during this period was Philippe Laffont’s Coatue Management which owns a $154 million stake in the company.
Aristotle Small/Mid Cap Equity Composite made the following comment about Albemarle Corporation (NYSE:ALB) in its second quarter 2023 investor letter:
“Albemarle Corporation (NYSE:ALB), the world’s largest lithium producer was sold from the portfolio amidst the announcement from Chile’s president that he would nationalize the country’s lithium industry and in time transfer control from SQM and Albemarle to a separate state-owned company effectively changing long-term risk/reward ratio of the stock, in our view.”
2. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 66
Freeport-McMoRan Inc. (NYSE:FCX) shares jumped earlier this month after copper prices increased following China’s initiative to slash copper reserve requirements in an attempt to boost its economy’s recovery.
Diamond Hill Large Cap Strategy made the following comment about Freeport-McMoRan Inc. (NYSE:FCX) in its Q4 2022 investor letter:
“Other top contributors during the quarter were copper producer Freeport-McMoRan Inc. (NYSE:FCX) and health care facilities operator HCA Healthcare. With little fundamental news to report, Freeport-McMoRan’s share price advance in Q4 reflected a rebound in copper prices, driven by the recognition that copper inventories are low relative to historical norms. We believe the company continues to have meaningful price and volume leverage in a copper constrained world.”
1. Teck Resources Limited (NYSE:TECK)
Number of Hedge Fund Holders: 79
Teck Resources Limited (NYSE:TECK) is in the spotlight as analysts believe there’s still a chance the company may be acquired by Glencore. Another major growth catalyst for the stock is rising copper demand.
As of the end of the second quarter of 2023, 79 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Teck Resources Limited (NYSE:TECK). The most significant stakeholder of Teck Resources Limited (NYSE:TECK) during this period was Eric W. Mandelblatt’s Soroban Capital Partners which owns a $423 million stake in the company.
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