LithiumThe lithium mining sector is currently one of the most promising options for investment, even if today’s price movement isn’t overwhelmingly positive. Livent Corp. (NYSE: LTHM) is a lithium company that produces materials for high performance battery cells, aerospace products, and even pharmaceutical products. With the lithium market set to explode in the coming years, this is one of the most promising alternative stocks available.

Livent has generated strong revenue gains for the last two fiscal years. In FY17, revenue increased 31.54% year over year. In FY18, the company generated $442.5 million in revenue, a year over year gain of 27.37%. Unlike many ‘young’ mining companies, Livent is currently generating high income, with a profit margin of 46.08% in the last full year report.

Livent’s appeal is not in its short-term performance, but in its potential to generate sustained long term revenue. Today, lithium is slightly oversupplied, which is one reason for this stock’s underperformance since it entered the market. However, this is set to change in the future. In 2019, total industry demand for lithium will hit around 325,000 tons. By 2025, that demand is expected to increase to 1 million tons. Companies like Livent will benefit from rising demand and higher prices.

There’s speculation in this stock but it’s based on good data. Lithium demand will be driven by smartphones and other portable devices, electric vehicles, and small scale energy storage devices, such as those used in residential solar systems. Investors that want to buy into the clean electric revolution will find this bargain stock to be compelling.

Key Data:

  • YTD Price Growth: -50.00%
  • 3 Month Price Growth: -43.77%
  • 1 Month Price Growth: 98%

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.