In this article, we discuss the 5 best lithium and battery stocks to buy according to financial media. If you want to read our detailed analysis of these stocks, go directly to 12 Best Lithium and Battery Stocks to Buy According to Financial Media.
5. QuantumScape Corporation (NYSE:QS)
Number of Hedge Fund Holders: 20
QuantumScape Corporation (NYSE:QS) focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. On December 18, investment advisory Willaim Blair initiated coverage of QuantumScape Corporation (NYSE:QS) stock with a Market Perform rating.
At the end of the third quarter of 2023, 20 hedge funds in the database of Insider Monkey held stakes worth $83 million in QuantumScape Corporation (NYSE:QS), compared to 17 in the previous quarter worth $47 million.
4. Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM)
Number of Hedge Fund Holders: 24
Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) produces and distributes specialty plant nutrients, iodine and derivatives, lithium and derivatives, potassium chloride and sulfate, industrial chemicals, and other products and services. On December 11, investment advisory JPMorgan maintained an Overweight rating on Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) stock and lowered the price target to $64 from $75.
At the end of the third quarter of 2023, 24 hedge funds in the database of Insider Monkey held stakes worth $286 million in Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM), the same as in the preceding quarter worth $324 million.
3. Livent Corporation (NYSE:LTHM)
Number of Hedge Fund Holders: 24
Livent Corporation (NYSE:LTHM) manufactures and sells performance lithium compounds primarily used in lithium-based batteries, specialty polymers, and chemical synthesis applications. On November 29, investment advisory JPMorgan maintained a Neutral rating on Livent Corporation (NYSE:LTHM) stock and lowered the price target to $15 from $25.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Livent Corporation (NYSE:LTHM) with 82 million shares worth more than $180 million.
In its Q3 2023 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Livent Corporation (NYSE:LTHM) was one of them. Here is what the fund said:
“Livent Corporation (NYSE:LTHM) is a pure-play, fully integrated producer of performance lithium compounds. The decline in lithium spot market prices, primarily in China, pressured shares. Despite this near-term headwind, the global lithium market remains tight in the long term. We believe Livent plays a critical role in the electric vehicle (EV) battery value-chain and is well-positioned for the overall growing global adoption of EVs. The company also remains on track to close its announced merger with an Australian-based peer by the end of the year. The combined company will benefit from enhanced operating flexibility and an increased global footprint.”
2. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 37
Albemarle Corporation (NYSE:ALB) develops, manufactures, and markets engineered specialty chemicals worldwide. On December 12, investment advisory Bank of America upgraded Albemarle Corporation (NYSE:ALB) stock to Neutral from Underperform and lowered the price target to $149 from $154.
At the end of the third quarter of 2023, 37 hedge funds in the database of Insider Monkey held stakes worth $274 million in Albemarle Corporation (NYSE:ALB), compared to 41 the preceding quarter worth $436 million.
In its Q3 2023 investor letter, The London Company, an asset management firm, highlighted a few stocks and Albemarle Corporation (NYSE:ALB) was one of them. Here is what the fund said:
“Albemarle Corporation (NYSE:ALB) – ALB underperformed due to declining lithium spot prices in the quarter. We remain attracted to ALB, reflecting its low cost position in two consolidated industries (lithium & bromine). However, we recognize quarterly results can be volatile, driven by short-term supply-demand dynamics for the underlying commodities. It is important to note that ALB’s favorable position on the cost curve means the company can likely maintain healthy profitability even at trough prices.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 81
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company. On December 18, investment advisory RBC Capital maintained an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) stock and lowered the price target to $300 from $301.
At the end of the third quarter of 2023, 81 hedge funds in the database of Insider Monkey held stakes worth $5.8 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 79 in the previous quarter worth $6.5 billion.
Here is what Baron Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
“Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text)
You can also take a peek at 15 Biggest Lumber Companies in the World and 15 Biggest Cryptocurrency Exchanges in the World.
