In this article, we discuss the 5 Best Lithium Stocks to Buy Now. If you want to read our detailed analysis of the lithium industry, go directly to 11 Best Lithium Stocks to Buy 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 stocks to buy now:
5. Energizer Holdings, Inc (NYSE: ENR)
No of HFs: 26
Total Value of HF Holdings: $170 Million
The everyday household battery supplier, Energizer Holdings, Inc. ranks 5th in our list of best lithium stocks to buy now. ENR specializes in different batteries using lithium, alkaline, carbon size, and silver oxide constructions. On February 1, the company announced a quarterly dividend of $0.30 per share of common stock, payable on March 11, 2021, to shareholders of record on February 19, 2021.
There were 26 hedge funds that hold a position in Energizer by the end of December, compared to the 28 funds in the third quarter. In the fourth quarter, Mario Gabelli’s GAMCO Investors boosted their stake in ENR by 5%. The fund had 1.7 million shares, worth $74 million.
4. Johnson Controls, Inc. (NYSE: JCI)
No of HFs: 34
Total Value of HF Holdings: $795 Million
Johnson Controls, Inc. is based in Cork, Ireland. The company manufactures fire, HVAC, and building safety equipment. The United States Department of Energy under the American Recovery and Reinvestment Act (ARRA) recently granted JCI to build domestic manufacturing capacity for advanced batteries for hybrid and electric vehicles. JCI offers a dividend yield of 1.85%.
At the end of the fourth quarter, 34 hedge funds in Insider Monkey’s database of 887 funds held stakes in Johnson Controls, Inc., compared to 24 funds in the third quarter.
Diamon Hill Capital mentioned JCI in its Q1 2020 investor letter:
“Diversified technology and industrial company Johnson Controls International company Johnson Controls Internaional PLC underperformed after reporting disappointing quarterly results. We continue to believe the stock is trading at a significant discount to our estimate of intrinsic value and that the new management team has an attractive opportunity to grow that intrinsic value over time through continue operational improvements and shrewd capital allocation.”
3. Quantumscape Corporation (NYSE: QS)
No of HFs: 35
Total Value of HF Holdings: $1.84 Billion
Quantumscape Corporation ranks 3rd on our list of 11 best lithium stocks to buy now. QS is a startup company backed by Bill Gates and Volkswagen. The company develops and commercializes solid-state lithium-metal batteries for electric vehicles. The stock is down 29% year to date.
At the end of the fourth quarter 35 hedge funds in Insider Monkey’s database of 887 funds held stakes in Quantumscape Corporation, up from 14 funds a quarter earlier.
2. FMC Corporation (NYSE: FMC)
No of HFs: 45
Total Value of HF Holdings: $571 Million
Ranking 2nd on our list of 11 best lithium stocks to buy now is FMC Corporation. The company is one of the most valued suppliers of lithium worldwide. The Crop Science Forum and Award 2020, recognized FMC with top honors in the best R&D Pipeline and Best Biological Product (Biostimulant) category. On December 2020, FMC Corporation announced a quarterly dividend of $0.48 per share payable on January 21, 2021. This represents an increase of 9.1% from the previous one.
Our database shows that 45 hedge funds held stakes in FMC Corporation at the end of December, versus 41 funds in the third quarter. Among these, Ross Tuner’s Pelham Capital is the biggest stakeholder in the company, with 1.04 million shares worth $119 million.
1. Tesla, Inc. (NASDAQ: TSLA)
No of HFs: 68
Total Value of HF Holdings: $12.3 Billion
Topping the list of 11 best lithium stocks to buy now is Tesla, Inc. Shares of TSLA rallied 340% over the last twelve months. In 2020, the company delivered 499,500 vehicles beating the consensus estimate of 481,261.
A total of 58 hedge funds tracked by Insider Monkey were long TSLA at the end of December 2020, compared to 67 in the third quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder in TSLA, with 28 million shares worth $20 billion.
Mott Capital Management mentioned TSLA in its 4Q 2020 investor letter:
“The significant gains in 2020 were attributable to Tesla, which surged by more than eightfold. It seems hard to believe, but the stock made up 6 years of underperformance and then some all-in-one year. I will be honest, I’m not sure we will have an experience like it again. The stock reached a very high concentration level in the portfolio given the outsized gains, which I was not always comfortable with given the stock’s volatility. The run-up in price led to the stock being trimmed back on a few occasions when it reached 20% of the overall portfolio value.
Tesla has surged roughly another 20% in 2021, which has led it to hit 20% of the portfolio value. As a result, I trimmed the position again. It now accounts for about 15% of individual portfolios as of this letter. If it should reach 20% again, I will assess the situation and manage the risk accordingly.”
Please also see Top 10 Car Company Stocks to Invest In and 15 Fastest-Growing Fintech Companies.
