Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

16. Albemarle Corporation (NYSE:ALB)

Growth Investment Ratio: 112%

Number of Hedge Fund Holders: 32

Albemarle Corporation (NYSE:ALB) is a key player in the global lithium industry. As a result, it has substantial exposure to battery production and the electric vehicle industry. This hasn’t fared well for Albemarle Corporation (NYSE:ALB) in 2024 as the lithium industry has struggled from overcapacity. Not only has the demand for electric vehicles slowed in a high-rate and inflationary environment, but a sluggish Chinese economy has also cut the demand for lithium since a large number of battery manufacturers are based in the country. Consequently, the fact that Albemarle Corporation (NYSE:ALB)’s shares are down 26.3% year to date is unsurprising, with the firm reporting a $1.1 billion net loss during its fiscal Q3. The bearishness surrounding lithium has also shifted the narrative for the lithium company. Albemarle Corporation (NYSE:ALB) is now aiming to save as much as $400 million in operating expenses in 2025 and cut its capital expenditure by 50%. These efforts, coupled with new initiatives such as its plans to sell spodumene in its raw firm should drive Albemarle Corporation (NYSE:ALB)’s hypothesis moving forward.

The London Company mentioned Albemarle Corporation (NYSE:ALB) in its Q2 2024 investor letter. Here is what the fund said:

“Sold our remaining position in ALB after the stock triggered our soft stop loss review. We are concerned that weaker demand in the US for electric vehicles coupled with greater than expected supply of lithium reaching the market may lead to declining lithium prices. This will likely lead to lower cash flow generation in the years ahead, which weakens the downside protection case for the stock.”