Below we presented the list of 5 best lithium and battery stocks to buy today. For a more comprehensive list please see the top 11 lithium and battery stocks to buy right now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the best lithium and battery stocks to buy according to hedge funds:
5. Albemarle Corp (NYSE: ALB)
No of HFs: 27
Total Value of HF Holdings: $112 Million
Albemarle Corp is a North Carolina based fine chemical manufacturing company considered the largest electric vehicle provider of lithium.
The fund’s top hedge fund holder is Ken Griffin’s Citadel Investment Group which is also the top hedge fund holder of JCI. Billionaire Griffin had more than US$34 million invested in the stock at the end of September.
For the second quarter of 2020, the company reported a net income of US$86 million or US$0.08 per diluted share; adjusted earnings per diluted share of $0.86. They also reported net sales of $764 million, a decrease of 14%, in-line with Q2 2020 outlook.
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4. Energizer Holdings, Inc. (NYSE: ENR)
No of HFs: 28
Total Value of HF Holdings: $221 Million
Energizer Holdings, Inc. is a producer, marketer, and distributor of every day household batteries. They specialize in batteries and lighting products and offer different batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air and silver oxide constructions.
The top hedge fund holder is Mario Gabelli’s GAMCO Investors with more than US$66 million invested in the stock at the end of September.
For the fourth quarter Energizer reported strong growth with a net sales increase of 6.1% brought about by organic net sales growth. The company also reported net sales increase of 10% including 2.5% organic growth for the entire fiscal year.
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3. FMC Corporation (NYSE: FMC)
No of HFs: 41
Total Value of HF Holdings: $525 Million
FMC Corporation is a Philadelphia, Pennsylvania based chemical manufacturing company known as one of the most valued suppliers of the world’s lithium used in batteries, pharmaceuticals, lubricants, high-strength plastics, and high-purity silicon computer chips.
The company was recently recognized with top honors in the best R&D Pipeline and Best Biological Product (Biostimulant) categories at the Crop Science Forum and Awards 2020.
The top hedge fund holder of this stock is Ross Turner’s Pelham Capital which had $128 million invested in the stock at the end of September.
The company is forecasting full year 2020 revenue to be in the range of US$4.68 billion to US$4.82 billion, representing an increase of 3 percent at the midpoint versus 2019.
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2. Enphase Energy, Inc. (NASDAQ: ENPH)
No of HFs: 42
Total Value of HF Holdings: $1 Billion
Enphase Energy, Inc. is an energy technology company based in Fermont, California. They develop and produce home energy software-driven solutions spanning solar generation, home energy storage, and web-based monitoring control.
The company has 19% market share in the US and we are still in the early innings of residential installation of solar energy. The solar market for residential and commercial use will continue to grow.
For this stock, the top hedge holder is Daniel Patrick Gibson’s Sylebra Capital Management with more than $345 million invested in the stock at the end of September.
During the third quarter of 2020, the company reported total revenue of $178.5 million, with cash flow from operations of $67.5 million, and an ending cash balance of $661.8 million. GAAP gross margin of 53.2%, record non-GAAP operating income of $43.7 million.
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1. Tesla Inc. (NASDAQ: TSLA)
No of HFs: 67
Total Value of HF Holdings: $8 Billion
Tesla is now a very popular stock among hedge funds. Sure, there are still a few short sellers who make a lot of noise (see this short seller who thinks the stock is going to zero), a large number of hedge funds are very bullish about the stock. Here is what Worn Capital said about Tesla in its 2020 Q3 investor letter:
“A good example of riding our winners this year is Tesla, which we have studied down to the cellchemistry level since 2015. In August, for instance, the bid for Tesla increased some 70%. Was this increase in bid itself a reason to sell our ownership, or even to trim? No. Tesla continues to be dramatically undervalued relative to its long-term, multi-year intrinsic value, in our view. As I have discussed in previous letters, I believe Tesla is perhaps the single best investment opportunity in the market today: It is a true disruptor competing in vast end markets (transportation, trucking, energy storage) that are each worth trillions of dollars of potential market cap.
By 2025, I expect Tesla to be trading at multiples of where it’s currently priced today. Of course, month-to-month or even quarter-to-quarter we may see the prices bounce around, but we don’t attempt to time the market. As a rule, industry juggernauts in their early stages tend to be more volatile. That’s why we think in terms of years and not days: It gives us the flexibility of opportunity to make multiples on our invested capital.”
Please also see 30 Most Popular Stocks Among Hedge Funds: 2020 Q3 Ranking and 10 Best Growth Stocks to Buy Now According to Ray Dalio
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