With a runway for spectacular growth this year, these stocks should be carefully considered
With electric vehicles (EVs) continued popularity, battery stocks are taking a fair share of attention and profits. Some are rising above the competition in production capacity and market share. Furthermore, they are teeming with potential to reward patient investors.
These three battery stocks have some of the best positions within the battery sector. They are on track to continue the impressive performance and growth. Excellent returns may ensure your spot in the millionaire’s club next year.
Let’s learn about their recent earnings, production capacity and exciting partnerships that will propel them to new heights this year.
Freyr Battery (FREY)
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Freyr Battery (NYSE:FREY) is an up-and-comer within EV battery producers.
Though not yet profitable, it is still in the early stages of its full potential. In Q1, FREY reported a net loss of $28.7 million. That’s quite a drastic increase from a net loss of $12.7 million year-over-year (YOY). The loss is primarily due to a $1.5 million net foreign currency transaction gain YOY and a decreased income.
Despite this, estimates for EPS were at a net loss of $0.24 per share. And FREY came in at a net loss of $0.20 per share, showing an exciting earnings beat to start this year. Also, the earnings report included several optimistic messages from management regarding an exciting development outlook.
The most prominent of these announcements was the intention to commence production of unit cells in the first half of this year. Utilizing FREY’s CQP and SemiSolidTM technology, the assembly of these unit cells will validate FREYR’s technical and operational credentials.
Such a move will open up a new world of possibilities for the company. So, it’s likely to experience massive growth for the remaining year and continue to climb for excellent future profits.
Albemarle (ALB)
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Albemarle (NYSE:ALB) is one of the largest lithium suppliers in the world. With every step that EVs take into the spotlight and grow in mainstream popularity, the demand for lithium increases as well.
As Albemarle fuels the EV revolution, it holds a growing market share of lithium supply. It has steadily increased from its 16% share two years ago. ALB has facilities in the U.S., Australia, Europe, South America and Asia, supplying the most prominent EV producers.
With lithium prices showing volatility in recent years, Albemarle is directly affected as a sole supplier of lithium. Profits rose during peak prices in 2021. However, they have fallen significantly along with lithium prices this year. Yet despite these headwinds, the company maintains a steady profit.
In Q1 of this year, Albemarle reported up to $2 million in net income. Additionally, it reaffirmed its positive outlook for the remaining year, taking the volatility of lithium prices into account. ALB is valued relatively low and could see lower prices if lithium prices and demand rise from a projected increase in EV production.
Therefore, Albemarle is a relatively safe bet for investors searching for a sturdy battery stock.
Panasonic Holdings Corp. (PCRHY)
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Many view Panasonic Holdings Corp.(OTCMKTS:PCRHY) as a massive Japanese conglomerate. They see it being responsible for some of the world’s leading technology, including entertainment and computer systems. However, PCRHY has quite a significant stake in EV batteries. Impressively, it continues to demonstrate commitment to expanding its share.
One of the company’s first moves in EV batteries was an extensive partnership with Tesla. The duo’s combined efforts created the groundwork for the production of Gigafactory 1 in Nevada, which Panasonic Holdings Corp. has continued to expand.
In addition to two U.S. factories, the company has unveiled plans to expand production capacity at its plants in Kansas and Japan. This will help to meet an increase in Tesla’s demand. Also, Panasonic Holdings Corp. has agreed to supply batteries to other major EV producers, like Lucid.
The conglomerate doesn’t rely solely on the income from battery supply to supplement these massive expansion plans. So, it is serious about bulking now, and investors should take notice.
On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
