In this article, we discuss the 5 EV stocks to invest in. If you want to read about some more EV stocks, go directly to the 10 EV Stocks to Invest In.
5. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 39
Albemarle Corporation (NYSE:ALB) develops, manufactures, and markets engineered specialty chemicals worldwide. Even though 2022 has not been kind on most firms, Albemarle is a refreshing exception, having revised guidance upwards in the past few months. The rocketing prices of rare earths, especially lithium, have also helped the firm post record earnings. The firm will end 2022 with positive free cash flow even though analysts had expected that figure to be in the red earlier this year.
On September 9, Citi analyst P.J. Juvekar maintained a Buy rating on Albemarle Corporation (NYSE:ALB) stock and raised the price target to $345 from $294, noting that the lithium supply/demand balance was still tight.
At the end of the second quarter of 2022, 39 hedge funds in the database of Insider Monkey held stakes worth $600 million in Albemarle Corporation (NYSE:ALB), compared to 44 the preceding quarter worth $454 million.
In its Q1 2021 investor letter, Carillion Tower Advisers, 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) is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The firm’s shares outperformed in the quarter, driven largely by the current robust demand environment for lithium used in the manufacturing of electric vehicle batteries. As the global push towards the reduction of carbon emissions continues to gain steam, Albemarle is well positioned to benefit from the accelerating adoption of electric vehicles.”
4. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 42
Amphenol Corporation (NYSE:APH) primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors. In late July, the company announced that it had finalized the purchase of NPI Solutions. The latter is a company that manufactures cable assemblies and value-add interconnect assemblies for industrial applications with a focus on semiconductor manufacturing equipment. The annual sales of the business exceed $65 million. The firm also beat market estimates on earnings in the second quarter of 2022.
On August 23, UBS analyst Chris Snyder maintained a Buy rating on Amphenol Corporation (NYSE:APH) stock and raised the price target to $93 from $88, noting that the firm had multiple quarters of margin runway.
At the end of the second quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $962 million in Amphenol Corporation (NYSE:APH), compared to 40 in the preceding quarter worth $939 million.
3. Aptiv PLC (NYSE:APTV)
Number of Hedge Fund Holders: 43
Aptiv PLC (NYSE:APTV) designs, manufactures, and sells vehicle components worldwide. These include electrical, electronic, and fiber optic connectors. These are used by the EV industry in the manufacturing of the vehicles. In earnings results for the second quarter, posted on August 4, the firm reported earnings per share of $0.22, missing market estimates by $0.38. The revenue over the period was $4.1 billion, beating analyst expectations by more than $200 million.
On September 9, Bank of America analyst John Murphy maintained a Buy rating on Aptiv PLC (NYSE:APTV) stock and lowered the price target to $158 from $165, noting that the macro environment around auto firms had become riskier.
At the end of the second quarter of 2022, 43 hedge funds in the database of Insider Monkey held stakes worth $1.62 billion in Aptiv PLC (NYSE:APTV), compared to 48 in the preceding quarter worth $1.65 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Aptiv PLC (NYSE:APTV) was one of them. Here is what the fund said:
“The acceleration in electrification of transport should support electric vehicle (EV)-related stocks like Aptiv (NYSE:APTV), which came under pressure in the quarter on concerns the auto cycle is past its peak. Aptiv provides a range of solutions for the auto industry, including autonomous driving technologies, safety technologies, components, and wiring. The large exposure of APTV to EVs should lead to long-term value as EVs continue their growth, boosted by their relative attractiveness as prices at the pump hit near-historic highs.”
2. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 56
Freeport-McMoRan Inc. (NYSE:FCX) engages in the mining of mineral properties. One of the premier products of the firm is the metal copper, which is used extensively in the manufacture of electric vehicles. On September 8, the share price of the company gained nearly 8% and closed on $30.62 a share, the biggest gain registered by the stock since November last year. The rise coincided with a dramatic rise in the prices of copper after a summer lull due to weak China demand and macro issues.
On July 22, RBC Capital analyst Sam Crittenden maintained a Sector Perform rating on Freeport-McMoRan Inc. (NYSE:FCX) stock and lowered the price target to $35 from $46, noting that the firm had reported another strong quarter.
At the end of the second quarter of 2022, 56 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Freeport-McMoRan Inc. (NYSE:FCX), compared to 68 the preceding quarter worth $4.1 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Freeport-McMoRan Inc. (NYSE:FCX) was one of them. Here is what the fund said:
“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, and sells electric vehicles. On September 9, news agency Reuters reported that the company was looking to set up a lithium refinery in Texas. The move is part of a larger plan to shore up battery components as EV demand surges across the world. Lithium prices have skyrocketed in the past few months and supply chain issues arising from the pandemic recovery have hit supplies, forcing auto makers towards these decisions.
On September 6, Wolfe Research analyst Rod Lache upgraded Tesla, Inc. (NASDAQ:TSLA) stock to Outperform from Peer Perform with a price target of $360, noting that the firm would benefit from the Inflation Reduction Act.
At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $7.1 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 80 in the preceding quarter worth $11.2 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, Inc. (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 peek at 10 Russell 2000 Basic Materials Dividend Stocks to Buy and 10 Utilities Stocks with Over 3% Dividend Yield.
