7 Undervalued Lithium Stocks to Invest In

4. TETRA Technologies, Inc. (NYSE:TTI)

Number of Hedge Fund Holders: 19

Forward Price to Earnings (P/E) Ratio: 7.13

TETRA Technologies, Inc. (NYSE:TTI) provides energy-related services through its Completion Fluids & Products and Water & Flowback Services segments. The company provides clear brine fluids and additives for global oil and gas operations and produces liquid and dry calcium chloride products. It manages over 40,000 acres of brine leases in Arkansas, containing lithium carbonate equivalent resources of 234,000 tons, and markets ultra-pure zinc bromide for battery firms.

TETRA Technologies, Inc. (NYSE:TTI) achieved strong offshore and industrial chemicals performance despite weaker U.S. land activity in Q4 ended December 31, 2024. Adjusted EBITDA stood at $22.8 million, with margins increasing to 17% from 16.6% in the previous quarter. Industrial chemicals revenue jumped over 9% year-over-year to a record high, while the Completion Fluids & Products segment yielded $311 million in revenue for 2024. Water & Flowback Services witnessed headwinds from lower rig counts and decreased frac fleet activity but continued to prioritize water recycling and desalination.

Moreover, TETRA Technologies, Inc. (NYSE:TTI) increased production of its zinc bromide-based electrolyte with initial shipments to Eos Energy Enterprises. Its 2025 growth is supported by its expansion efforts in Brazil and deepwater projects in the Gulf of Mexico. To tackle rising water disposal hurdles in the Permian Basin, TETRA introduced the OASIS Total Desalination Solution (TDS).

Moving forward, TETRA Technologies, Inc. (NYSE:TTI) forecasts a pre-tax net income of between $19 million and $34 million, with adjusted EBITDA ranging from $55 million to $65 million for Q1 and Q2 2025. Lithium and bromine initiatives in Arkansas could fuel long-term growth, whereas cash flow is expected to be strengthened by a $345 million U.S. tax loss carryforward. The strategic initiatives, coupled with the company’s financial projections, rank it among the undervalued lithium stocks.