The lithium battery market represents a strong growth opportunity for investors. Lithium cells are used in devices ranging from digital cameras and smartphones to laptops and communications equipment. Lithium cells are also used extensively in the electric vehicle industry, the fastest-growing segment of the wider automotive industry. Livent Corp. (NYSE: LTHM) is a bargain pick with strong long-term potential.
Livent produces high-performance lithium compounds. Most of its business is focused on battery-grade lithium hydroxide. The company has had a rough opening on the public market. Close to the end of last year, shares were down 53% from the company’s IPO. Earnings have been lower than expected, and demand for lithium products is expected to be mild in the short-term.
However, there’s a strong upside for investors to look forward to. The global economy has overcome recession fears and the electric vehicle market is growing. Increased requirements for lithium tech in portable devices should also help to drive demand in the future. This is definitely a contrarian pick and there’s a lot of speculation in it, but its bargain price means that investors can take some risk without a huge financial investment.
Stock is right on its target price today, but figures could be revised in the coming weeks. There’s momentum behind the stock with 9.86% growth in the last five days. It would make sense within a well-diversified alternative investment portfolio.
- 1 Year Price Growth: -32.62%
- YTD Price Growth: 92%
- 3 Month Price Growth: 86%
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.