7 Best Battery Stocks to Buy According to Analysts

4. Albemarle Corporation (NYSE:ALB)

Upside Potential: 31.15%

Albemarle Corporation (NYSE:ALB) is involved in the development and manufacturing of specialty chemicals, with a strong focus on battery technology through its energy storage segment. The company provides lithium compounds, such as lithium carbonate and lithium hydroxide. These compounds are essential for energy storage solutions and electric vehicle (EV) batteries. It serves the consumer electronics and automotive industries through its diversified product portfolio.

Albemarle Corporation (NYSE:ALB) reported a strong performance in Q2 2024 despite a challenging lithium market. The energy storage segment reported a volumetric increase of 37% year-over-year. Early-stage commercial sales from the Meishan project boosted the segment’s performance.

Moreover, adjusted EBITDA for the quarter reached $386 million. This was mainly supported by increased volume in lithium sales, primarily driven by Talison JV. Albemarle Corporation (NYSE:ALB) maintained an optimistic outlook on the lithium market, with the price forecast set at $15 per kilogram for the rest of the year. The company attributes this to enterprise-wide cost improvements and strong contract performance in the energy storage department.

Albemarle Corporation (NYSE:ALB)’s cost-saving strategy is also worth mentioning. It is streamlining operations at its Kemerton site in Australia, with the aim of saving $200-300 million in capital spending. Furthermore, the company ended the quarter with $3.5 billion in liquidity, reflecting a strong financial position.

Nevertheless, it has faced significant lithium pricing pressures due to an oversupply from China and a softened EV market. As a result, its stock has fallen by more than 45% on a YTD (year-to-date) basis. Thus, the decline in lithium prices is raising concerns about the company’s future profitability.

As of Q2 2024, 32 hedge funds have invested $484 million collectively in the company as per Insider Monkey’s database. Additionally, analysts predict an upside potential of 31.15% in the share price, placing it on the list of the best battery stocks to buy.