Lithium stocks are notoriously volatile, with market performance failing to align with real-world applications and growth potential. This has pushed some investors away from once-popular stocks. However, for those confident in the future of lithium, there are bargains to be had. Livent Corp. (NYSE: LTHM) is an American lithium producer with activities in the Americas, Europe, Asia, and the Middle East. Although revenue fell in 2019, this remains a compelling stock at its current price.
Lithium price volatility and a decline in global trade led to a -12.23% decline in revenue during 2019. Gross income fell by -36.63%. Even with a decrease in performance, the gross profit margin remained high at 33.37%, and the EBITDA margin was also positive at 27.50%. By demonstrating that it can remain fiscally responsible and profitable even when facing economic headwinds, the company has proven its viability as a long term investment.
Lithium is a component in modern battery cells and is key to electric vehicles, computers, smartphones, and other portable devices. As the world moves towards automation, lithium demand will grow. Any investor focused on a future with cleaner renewable energy and hi-tech battery-powered devices should consider this bargain stock in August. The low price makes it a viable investment for any future-focused portfolio.
- 1 Year Price Growth: 68%
- YTD Price Growth: -21.05%
- 3 Month Price Growth: 41%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.