Electrification through renewables relies on battery cell storage. In turn battery cells rely on lithium. Mining company Lithium Americas Corp (NYSE: LAC) is a major supplier to alternative energy companies in the United States. Stock is outperforming expectations and it’s worth a closer look.
There’s a growing market for renewable energy both in the United States and around the world. Investors often focus on the innovative companies bringing new technologies to consumers and industries. However, there’s another side to renewable energy, and it’s one that is largely traditional.
High demand for lithium and cobalt has sent revenues of companies like Lithium Americas Corp. soaring. In 2017, revenue increased 355.25%. The company is expected to post 2018 revenues later this month, with a 144.4% increase on revenue for the holiday quarter. However, total earnings may be down due to cost factors in the mining industry. This could send stock prices lower and make shares even more attractive for first time investors.
LAC has potential due to its ability to serve the alternative energy industry. While operational cost issues still need to be addressed, the stock is so affordable that it’s still worth considering as a cautious investment in 2019.
- 1 Year Price Growth: -20.34%
- YTD Price Growth: 70%
- 3 Month Price Growth: 96%
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.