5 Best Battery Stocks To Buy Heading Into 2023

In this article, we discuss 5 best battery stocks to buy heading into 2023. If you want to see more stocks in this selection, check out 10 Best Battery Stocks To Buy Heading Into 2023. 

5. Samsung Electronics Co., Ltd. (KSE:005930.KS)

Number of Hedge Fund Holders: N/A

Samsung Electronics Co., Ltd. (KSE:005930.KS) is a South Korean company engaged in the consumer electronics, information technology, mobile communications, and device solutions businesses worldwide. Samsung SDI supplies a significant number of batteries to Samsung Electronics for its products, in addition to providing solid state electric vehicle batteries. On October 27, Samsung Electronics Co., Ltd. (KSE:005930.KS) posted a Q3 GAAP EPS of KRW1.35 and a revenue of KRW76.78 trillion, up 3.8% year-over-year. It is one of the best battery stocks to buy heading into 2023. 

4. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 47

Ford Motor Company (NYSE:F) is a Michigan-based company that designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. On July 21, Ford Motor Company (NYSE:F) announced that it will supply 60 gigawatt hours (GWh) of annual battery capacity to deliver a global 600,000 EV run rate by late 2023. Lithium iron phosphate battery packs will also be introduced for Mustang Mach-Es sold in North America next year and F-150 Lightnings in early 2024. It is one of the best battery stocks to consider. 

On December 15, Ford Motor Company (NYSE:F) and China-based Contemporary Amperex Technology announced that they are considering a potential plan to construct a battery plant in Michigan or Virginia to provide lithium iron phosphate batteries for electric models and still qualify for tax credits under the Inflation Reduction Act.

Citi analyst Itay Michaeli on November 30 raised the price target on Ford Motor Company (NYSE:F) to $14 from $13 and kept a Neutral rating on the shares. The analyst updated his model to reflect the Q3 results and latest data points. 

According to Insider Monkey’s data, Ford Motor Company (NYSE:F) was part of 47 hedge fund portfolios at the end of Q3 2022, compared to 46 in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with nearly 45 million shares worth $503.6 million. 

Here is what Leaven Partners has to say about Ford Motor Company (NYSE:F) in its Q3 2022 investor letter:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6% from 7.2% in early August and slashing full-year profit growth to 4.5%.”

3. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 49

Albemarle Corporation (NYSE:ALB) is a North Carolina-based company that develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments – Lithium, Bromine, and Catalysts. The Lithium segment provides lithium compounds for use in lithium batteries for consumer electronics and electric vehicles. Albemarle Corporation (NYSE:ALB) is one of the premier battery stocks to buy for next year. 

On December 13, Albemarle Corporation (NYSE:ALB) announced that it has acquired a location in Charlotte, North Carolina, where it will invest at least $180 million to establish the Albemarle Technology Park. Albemarle Corporation (NYSE:ALB) expects innovations from the technology park to advance lithium recovery, improve production, and introduce new types of lithium to allow record levels of battery performance.

Citi analyst P.J. Juvekar on December 15 maintained a Buy recommendation on Albemarle Corporation (NYSE:ALB) but lowered the firm’s price target on the shares to $295 from $345. The analyst is not turning negative on lithium, but is making more of a short-term call. He expects lithium demand to continue to grow nearly 20% annually into 2030 and supply will struggle to catch up. 

According to Insider Monkey’s data, 49 hedge funds were bullish on Albemarle Corporation (NYSE:ALB) at the end of Q3 2022, compared to 39 funds in the earlier quarter. Israel Englander’s Millennium Management is the biggest position holder in the company, with 603,396 shares worth $159.5 million. 

Carillon Tower Advisers made the following comment about Albemarle Corporation (NYSE:ALB) in its Q3 2022 investor letter:

“Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The company’s shares outperformed meaningfully in the quarter, driven largely by robust demand for lithium used to manufacture electric vehicle batteries. Albemarle is well-positioned for the accelerating adoption of electric vehicles and could benefit from the Inflation Reduction Act.”

2. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 74

General Motors Company (NYSE:GM) designs, manufactures, and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. On December 2, General Motors and LG Energy Solution disclosed that they will spend an additional $275 million in their joint venture battery plant in Tennessee to increase production by more than 40%. The new investment follows the $2.3 billion announced in April 2021 to construct the 2.8 million square-foot facility. It is one of the best battery stocks to invest in. 

On November 18, Wedbush analyst Daniel Ives told investors that General Motors Company (NYSE:GM)’s Investor Day event was “impressive” and that it was a “check up” on GM’s electrification strategy and update for the Street around advancements on that vision. The analyst noted that GM “easily could have been more cautious” around targets, battery production, and overall demand looking ahead for the coming years, but instead management “came out swinging” as General Motors Company (NYSE:GM) is very confident in its long-term EV targets. The company also reinforced its ambition through 2030 as the Ultium battery ecosystem has been buzzing despite global production/component problems.

According to Insider Monkey’s data, 74 hedge funds were long General Motors Company (NYSE:GM) at the end of the third quarter of 2022, compared to 75 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway held the largest position in the company, comprising 50 million shares worth $1.60 billion. 

Diamond Hill made the following comment about General Motors Company (NYSE:GM) in its Q3 2022 investor letter:

“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken steps necessary to focus the company on the most profitable segments and move into position to compete in an electrified and autonomous world. With the recent rise in interest rates there was a meaningful selloff in the auto industry, which presented us with an attractive entry point to a name we know well.”

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88

Tesla, Inc. (NASDAQ:TSLA) is a Texas-based company that manufactures, leases, and sells electric vehicles, energy generation systems, and battery storage solutions. Tesla provides Powerwall, an integrated battery system that stores solar energy for backup protection, so when the grid goes down, the power stays on. Tesla, Inc. (NASDAQ:TSLA) is one of the leading battery stocks to consider buying. 

For the EV sector, Morgan Stanley estimated global EV sales of 9.7 million units and global EV penetration of 11.8% in 2023, compared to 10.1% in 2022. Looking at the 2023 setup, Morgan Stanley maintained an Overweight rating on Tesla, Inc. (NASDAQ:TSLA), noting that it is one of the long-term winners in the sector.

According to Insider Monkey’s data, Tesla, Inc. (NASDAQ:TSLA) was part of 88 hedge fund portfolios at the end of September 2022, compared to 73 in the last quarter. Cathie Wood’s ARK Investment Management is a significant position holder in the company, with 4 million shares worth over $1 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 look at 10 Best BDC Stocks To Buy and Best Dogs of the Dow Stocks.