We recently compiled a list of the 12 Cheap EV Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Sigma Lithium Corporation (NASDAQ:SGML) stands against the other cheap EV stocks.
Ownership of EVs is rising in the US. On March 16, CNBC reported that currently there are nearly 6 million battery EVs and plug-in hybrids on the roads. While this represents only a small portion of the overall vehicle market, it marks significant progress and automobile manufacturers remain invested in the transition away from gasoline. It is worth noting that in 2024 sales of traditional internal combustion engine cars fell below 80% for the first time in modern history.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 8 Fastest Growing AI Stocks To Buy Right Now.
The steady growth in EV sales suggests that consumer concerns about range anxiety are diminishing. However, this fear of running out of battery power remains a challenge for the EV market. The EV industry is working to address this by installing enough chargers in public places and expanding public charging infrastructure to drive wide-scale EV adoption. Despite many efforts, charging companies are finding it difficult to maintain growth because of political uncertainties.
The Trump administration has proposed stripping away federal incentives for EVs and instead prioritizing oil and gas policies. This creates a challenging environment for EV manufacturers and charging companies. Moreover, tariffs on essential steel and aluminum are further challenging automakers and their operations.
Despite current challenges, many believe that the EV sector is expected to grow significantly as it aligns with global sustainability goals and technological advancements. Additionally, innovations in battery technology and charging infrastructure continue to make EVs more affordable and feasible.
Methodology
To compile our list of the 12 cheap EV stocks to buy according to hedge funds, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. To find cheap EV stocks, we narrowed down our selection by looking for stocks trading at under 20 times their forward earnings as of March 17, 2025. Next, we focused on the top 12 cheap EV stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 12 cheap EV stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up image of a technician changing a battery cell in a lithium-based battery.
Sigma Lithium Corporation (NASDAQ:SGML)
Forward P/E: 19.08
Number of Hedge Fund Holders: 21
Sigma Lithium Corporation (NASDAQ:SGML) is a global leader in lithium production. The company is one of the world’s largest producers of lithium for EV batteries and energy storage solutions. At its Grota do Cirilo operation in Brazil, Sigma Lithium Corporation (NASDAQ:SGML) produces Quintuple Zero Green Lithium, which is created with zero carbon emissions, no potable water, no toxic chemicals, and no tailings dams. SGML ranks among the best cheap EV stocks to buy.
In September 2024, Sigma Lithium Corporation (NASDAQ:SGML) held its Investor Day and outlined plans to increase its industrial capacity to approximately 125,000 tonnes per year of lithium carbonate equivalent (LCE) by 2026. This increase will come from 2 new industrial lines, with production set to begin in 2025 and 2026. Recently, Sigma Lithium Corporation (NASDAQ:SGML) reported that it remains on track to double its production capacity in 2025. The company has completed all foundation earthworks for its second Greentech industrial plant on time and within budget, with commissioning expected to begin in Q4 2025. Sigma Lithium Corporation (NASDAQ:SGML) also emphasized its cost-efficient approach. The company is leveraging its position as one of the world’s lowest-cost lithium producers to meet the growing demand for lithium. Sigma Lithium Corporation (NASDAQ:SGML) expects the lithium market to grow significantly by the end of the decade.
Overall, SGML ranks 9th on our list of the cheap EV stocks to buy according to hedge funds. While we acknowledge the potential of SGML as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SGML but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
