In this article, we discuss the 5 EV materials stocks to invest in. If you want to read about some more EV materials stocks, go directly to 10 EV Materials Stocks to Invest In.
5. Livent Corporation (NYSE:LTHM)
Number of Hedge Fund Holders: 30
Livent Corporation (NYSE:LTHM) manufactures and sells performance lithium compounds primarily used in lithium-based batteries, specialty polymers, and chemical synthesis applications. In early August, auto giant General Motors announced that it would be paying Livent Corp close to $200 million as a prepayment for a six-year guaranteed supply of lithium. The former said that the prepayment would lay the ground for the expansion of a business partnership in the coming years.
On August 8, investment advisory CICC initiated coverage of Livent Corporation (NYSE:LTHM) stock with an Outperform rating and a price target of $27.30.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Livent Corporation (NYSE:LTHM), with 75.9 million shares worth more than $206.6 million.
4. Vulcan Materials Company (NYSE:VMC)
Number of Hedge Fund Holders: 34
Vulcan Materials Company (NYSE:VMC) produces and supplies construction aggregates. The company was one of the first firms to supply lithium hydroxide, an important material for the manufacture of lithium batteries, to suppliers in Europe as electric vehicle demand picked up in the region. Europe has now emerged as one of the fastest growing EV markets in the world. The Vulcan Zero Carbon Lithium Project is located in the Upper Rhine Valley of Germany, near auto factories of Volkswagen, Northvolt, and Tesla.
On September 1, Vertical Research analyst Michael Dudas upgraded Vulcan Materials Company (NYSE:VMC) stock to Buy from Hold with a price target of $225, noting the firm will likely benefit from a broader construction recovery.
At the end of the second quarter of 2022, 34 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Vulcan Materials Company (NYSE:VMC), compared to 36 in the preceding quarter worth $2 billion.
In its Q4 2021 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and Vulcan Materials Company (NYSE:VMC) was one of them. Here is what the fund said:
“Vulcan Materials contributed to returns due to solid results and a bright outlook for the company’s prosaic, essential products. Aggregate volumes and backlogs are strong across end markets, pricing momentum is robust, and the federal infrastructure bill adds visibility into the amount of money that will be allocated to infrastructure projects.”
3. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 56
Freeport-McMoRan Inc. (NYSE:FCX) engages in the mining of mineral properties in North America, South America, and Indonesia. The company is one of the biggest copper producers in the world. Copper is one of the most important materials used in the manufacture of electric vehicles. The recent energy shortage in China has boosted the demand for the metal and helped increase prices. This has led to an improvement in the share price of the firm. The firm is based in the US and was founded in 1987.
On July 22, RBC Capital analyst Sam Crittenden maintained a Sector Perform rating on Freeport-McMoRan Inc. (NYSE:FCX) stock and lowered the price target to $35 from $46, noting that the firm had reported another strong quarter.
At the end of the second quarter of 2022, 56 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Freeport-McMoRan Inc. (NYSE:FCX), compared to 68 the preceding quarter worth $4.1 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Freeport-McMoRan Inc. (NYSE:FCX) was one of them. Here is what the fund said:
“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, tests, and sells integrated circuits and other semiconductor devices. The company is one of the premier chip manufacturers in the world and has gained increased importance on the back of a US-China trade war over chips. The company controls the first foundry to provide 7-nanometre and 5-nanometre chip production capabilities. These small chips are integral to the overall functioning of electric vehicles.
On July 14, Susquehanna analyst Mehdi Hosseini maintained a Neutral rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock and lowered the price target to $88 from $90, noting that the stronger revenues of the firm in 2022 make the 2023 numbers more challenging.
At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $9.2 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), compared to 81 in the preceding quarter worth $10 billion.
In its Q2 2022 investor letter, Mercator International Opportunity fund, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of them. Here is what the fund said:
“Another example of this buyers’ strike is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (1.81%), down 40% from its high and trading at less than 15 times forward earnings. When TSM announced better-than-expected earnings growth of 67% in the second quarter with no slowdown in sight, the stock barely gained a few percentage points. No matter how good the news, buyers are not showing up. Yet.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. The stock has gained on the back of reports that US President Biden will soon approve $900 million in funding for the setup of electric vehicle charging stations across 35 states in the US. The funding is part of a recently approved $1 trillion plan to modernize American infrastructure. Biden will also visit the North American International Auto Show in Detroit before the announcement.
On September 6, Wolfe Research analyst Rod Lache upgraded Tesla Inc. (NASDAQ:TSLA) stock to Outperform from Peer Perform with a price target of $360, noting that the firm would benefit from the Inflation Reduction Act.
At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $7.1 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 80 in the preceding quarter worth $11.2 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:
“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons: First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic; second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)
You can also take a peek at 10 Russell 2000 Basic Materials Dividend Stocks to Buy and 10 Utilities Stocks with Over 3% Dividend Yield.
