If You Can Only Buy One Battery Stock in April, It Better Be One of These 3 Names

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Battery stocks may not be one of the most exciting opportunities. But with the world fighting to go green, demand is only expected to rise for these top battery stocks to buy.

Remember, batteries are essential for renewable energy. As noted by Energy5.com, “By storing excess energy during periods of high production, battery storage systems enable a consistent and reliable supply of electricity, even when the sun isn’t shining or the wind isn’t blowing. This not only improves the overall efficiency of renewable energy but also contributes to grid stability and resilience.”

We also have to consider the global battery market could be worth about $322.2 billion by 2030 from $112.9 billion in 2022, according to ResearchandMarkets. In addition, the U.S. Department of Energy (DOE) announced $30 million in funding to support the creation of an electric vehicle battery supply chain. It also announced $3.5 billion in funding for battery manufacturing. All of which should help fuel further upside for battery stocks to buy, such as:

QuantumScape (QS)

QuantumScape (QS) is an American company that develops solid state lithium metal batteries for electric cars.

Source: JHVEPhoto / Shutterstock.com

Keep an eye on beaten-down shares of battery stocks to buy, such as QuantumScape (NYSE:QS). After diving to a recent low of $5.54, QS is now at $6.13 and is slowly trending higher.

Helping, analysts at Baird raised their price target to $8 with a neutral rating. They believe that new CEO Dr. Siva Sivaram could help the company achieve commercial scale production. 

Even better, the company just starting shipping its Alpha-2 prototype battery cells. These, according to Sivaram are a “significant milestone on the roadmap to deliver QSE-5, QuantumScape’s first planned commercial product.” 

He added, “We expect our transformation to continue in 2024, culminating in the integration of these improvements into our target first commercial product, the QSE-5 cell. Our goal is to begin low volume QSE-5 prototype production in 2024, with higher volumes targeted in 2025,” as quoted in a shareholder letter.

Plus, according to the company, it has a liquidity buffer of $1.07 billion at the moment. That should provide the company with enough cash as it transitions from prototype to product.

Albemarle (ALB)

Albemarle (ALB) logo on a mobile phone screen

Source: IgorGolovniov/Shutterstock.com

Keep an eye on rebounding shares of Albemarle (NYE:ALB).

While lithium prices are still low, shares of ALB have been pushing higher. In fact, since plunging to a March low of $106.35, it’s now back up to $131.69. From here, if ALB can break above current resistance, it could rally back to $140 near term. Sure, there are still plenty of bearish analyst ratings on the stock, but with the blood flowing in the streets, it’s time to buy. Especially ahead of an eventual lithium price rebound.

Helping, analysts at Loop Capital recently raised their price target on ALB to $168 from $144 with a buy rating. They added, “The stock has bounced off its lows, owing to a commensurate move in spot lithium prices in China, and the nascent recovery in lithium prices could signal that the destocking downstream at cathode/cell/battery makers is reaching its conclusion,” as quoted by TheFly.com.

Global X Lithium ETF (LIT)

Graphic of Lithium scientific symbol (Li) in the shape of a big white gear with construction equipment and mountain around it. favorite Lithium stocks

Source: GrAl / Shutterstock.com

Or, if you’d rather diversify with top battery-related stocks, check out the Global X Lithium ETF(NYSEARCA:LIT). After plunging to a low of $39.26 in February, it’s now consolidating at $45.73. From here, I’d like to see it break out with a potential test of $52.

With an expense ratio of 0.75%, the ETF holds 40 stocks, investing in the full lithium cycle. That includes mining and refining through battery production. Some of its top holdings include Albemarle, TDK Corp. (OTCMKTS:TTDKY), Pilbara Minerals (OTCMKTS:PILBF), and Panasonic Holdings (OTCMKTS:PCRFY) to name a few. 

Plus, the ETF trades at just under $46 a share, which means we can pick up 100 shares for about $4,600. That’s far better than picking up 100 shares of just one of the LIT ETF holdings, such as ALB for about $13,169. Not only can we gain exposure to 40 top stocks, we can do it cheap.

With an eventual recovery in lithium prices, and rising battery demand, the LIT ETF could soar.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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