8 Best Rare Earth Stocks and ETFs

3. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 39

Albemarle Corporation (NYSE:ALB) is a prominent player in the global specialty chemicals industry, focusing on three key areas: energy storage, specialties, and specialists.

Albemarle Corporation (NYSE:ALB) recently shared progress on the Kings Mountain Mine project, a significant lithium deposit in the US. The company’s plan includes the mine design, key features, and lithium extraction methods. If approved for investment, the mine is projected to produce approximately 420,000 tons of lithium concentrate annually. This lithium will be essential for electric vehicles, renewable energy storage, and national defense applications.

During the company’s Q1 2024 earnings call, it was reported that adjusted EBITDA remained strong at $291 million. Albemarle Corporation (NYSE:ALB) also highlighted its focus on cost control, delivering over $90 million in productivity savings in Q1 and remaining on track for its $280 million target for 2024.

Analysts are optimistic about the Albemarle Corporation (NYSE:ALB) stock, with an average 12-month price target of $147.81. This represents an over 49% upside potential from the current price of $99. The price targets range from a high of $188 to a low of $122. Based on ratings from 16 analysts, the stock is considered a “Moderate Buy,” reflecting positive analyst sentiment.

Here’s what The London Company said about Albemarle Corporation (NYSE:ALB) in its Q4 2023 investor letter:

“Albemarle Corporation (NYSE:ALB) – ALB underperformed as weak lithium prices drove downward revisions to earnings expectations, and sentiment became more negative regarding demand for electric vehicles. Commodity prices are inherently uncertain, but we continue to view ALB-as a winner in this growing industry and favorably positioned on the cost curve. Our long- term view of ALB is not affected by short-term supply- demand dynamics for the commodity.”

Albemarle Corporation (NYSE:ALB) ranks third on our list of the best rare earth stocks and ETFs.