In this article, we discuss the 5 best EV materials stocks to buy. If you want to read our detailed analysis of these stocks, go directly to the 10 Best EV Materials Stocks to Buy.
5. TE Connectivity Ltd. (NYSE: TEL)
Number of Hedge Fund Holders: 39
TE Connectivity Ltd. (NYSE: TEL) is a Swiss company that makes and sells connectivity and sensor solutions. It is ranked fifth on our list of 10 best EV materials stocks to buy. Some of the products that the firm markets to the electrical vehicle industry include terminals, connector systems, antennas, and relays, among others. In earnings results for the second quarter, posted on July 28, the firm reported earnings per share of $1.79, beating market estimates by $0.21. The revenue over the period was $3.8 billion, up 52% year-on-year.
On July 29, investment advisory Truist kept a Hold rating on TE Connectivity Ltd. (NYSE: TEL) stock but raised the price target to $149 from $139, noting the earnings beat posted by the company in the third fiscal quarter.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in TE Connectivity Ltd. (NYSE: TEL) with 9.7 million shares worth more than $1.2 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and TE Connectivity Ltd. (NYSE: TEL) was one of them. Here is what the fund said:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included information technology (IT), where TE Connectivity performed well but trailed the sector in the first quarter after a strong 2020.”
4. Amphenol Corporation (NYSE: APH)
Number of Hedge Fund Holders: 42
Amphenol Corporation (NYSE: APH) is placed fourth on our list of 10 best EV materials stocks to buy. The company operates from Connecticut. It makes and sells electrical, electronic, and fiber optic connectors. These are used by the EV industry in the manufacture of the vehicles. In earnings results for the second quarter, posted on July 28, the firm reported earnings per share of $0.61, beating market estimates by $0.05. The revenue over the period was $2.6 billion, up 33% year-on-year.
On August 3, investment advisory Cowen maintained an Outperform rating on Amphenol Corporation (NYSE: APH) stock and raised the price target to $80 from $75, underlining that the firm was well-positioned across a variety of megatrends.
At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $1.07 billion in Amphenol Corporation (NYSE: APH), up from 41 in the previous quarter worth $1.04 billion.
In its Q4 2020 investor letter, Richie Capital Group LLC, an asset management firm, highlighted a few stocks and Amphenol Corporation (NYSE: APH) was one of them. Here is what the fund said:
“Amphenol (APH – Up 18.7%) – In December, our high-speed, specialty connector manufacturer announced the acquisition of MTS Systems Corp for $1.7B to enhance their sensor products catalog. Having completed more than a dozen acquisitions since 2016, growth through acquisition is a key tenet of their business strategy and we view this transaction as business as usual. You can read more about our investment thesis for Amphenol here.”
3. Aptiv PLC (NYSE: APTV)
Number of Hedge Fund Holders: 50
Aptiv PLC (NYSE: APTV) is ranked third on our list of 10 best EV materials stocks to buy. The firm makes and sells different vehicle components. It is headquartered in Ireland. The firm has a market cap of over $44 billion and posted more than $13 billion in revenue last year. Some of the products that the firm markets to the electrical vehicle industry include connectors, wiring assemblies, electrical centers, and safety distribution systems, among others. The firm beat market expectations on revenue in the second quarter earnings posted on August 5.
On August 6, investment advisory Barclays maintained an Overweight rating on Aptiv PLC (NYSE: APTV) stock and raised the price target to $174 from $164, highlighting that the firm was posting strong organic growth and healthy order intake.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in Aptiv PLC (NYSE: APTV) with 2.9 million shares worth more than $402 million.
In its Q1 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Aptiv PLC (NYSE: APTV) was one of them. Here is what the fund said:
“Aptiv approached our estimates of intrinsic value and was, therefore, eliminated during the period. The company was longstanding investment of the Fund and produced successful outcomes. We continue to believe that Aptiv is a well-positioned auto supplier that is likely to continue outgrowing light vehicle production for the foreseeable future, but this dynamic is now more fully appreciated by the market.”
2. Freeport-McMoRan Inc. (NYSE: FCX)
Number of Hedge Fund Holders: 68
Freeport-McMoRan Inc. (NYSE: FCX) is an Arizona-based mining company. It is placed second on our list of 10 best EV materials stocks to buy. One of the premier products of the firm is the metal copper, which is used extensively in the manufacture of electric vehicles. The firm was founded in 1987 and has a market cap of over $54 billion. In earnings results for the second quarter, posted on July 22, the firm reported earnings per share of $0.77, beating market predictions by $0.02.
On July 23, investment advisory Deutsche Bank reiterated a Buy rating on Freeport-McMoRan Inc. (NYSE: FCX) stock but lowered the price target to $47 from $50, noting that the firm would increase investments in growth projects.
At the end of the first quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in Freeport-McMoRan Inc. (NYSE: FCX), down from 71 in the preceding quarter worth $2.6 billion.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM)
Number of Hedge Fund Holders: 76
Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) is a company that makes and sells integrated circuits and semiconductors. It is headquartered in Taiwan and is ranked first on our list of 10 best EV materials stocks to buy. The circuits and semiconductors made by the firm are used by EV firms. The company beat market expectations on earnings per share in the second quarter. It has a market cap of over $550 billion and posted more than $47 billion in revenue last year.
On June 22, investment advisory Argus initiated coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) stock with a Buy rating and a price target of $150, noting that the firm was emerging as a solutions provider in the global electronic industry supply chain.
At the end of the first quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $10.8 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), up from 72 in the preceding quarter worth $11.8 billion.
In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) was one of them. Here is what the fund said:
“Taiwan Semiconductor is the world’s largest outsourced foundry of logic semiconductor chips. TSMC’s shares appreciated 8.9% during the quarter.
Similar to last quarter, the supply-demand imbalance in semiconductor chips continues to benefit TSMC. To fuel new technological advances and meet the current supply imbalance, we see significantly increased capital spending across the industry over the coming years.
TSMC has an extraordinary track record of return on these large investments despite their rapid historical cadence of expansion. I remain hopeful that the large capital expenditure plan they now have ($100 billion of investment over the next three years) will be money well spent and not lead to industry oversupply in the medium term. Hopefully, future returns on these investments will look as good as those of the past.”
You can also take a peek at 10 Best EV Stocks To Buy Now and 10 Best EV Startups to Watch.
