Ultralife The lithium battery industry is underrepresented in the stock market, but there are some bargain picks that make sense in an alternative portfolio. Ultralife Corp. (NASDAQ: ULBI) is one option that should not be overlooked.

Ultralife is a power solutions manufacturer. It has invested significantly in lithium batteries, thin cells, cylindrical batteries, and disposable non-rechargeable batteries. While not a pure-play lithium stock, its diversification can actually be an advantage. By providing a range of power solutions, non-rechargeable, and rechargeable lithium batteries, it can take advantage of all sectors of the portable power market without betting everything on the eventual rise of lithium cell demand.

The company released its Q3 earnings data at the end of October. It made $27.5 million of revenue, with $898,000 of net income. This resulted in earnings per share of $0.06, or $0.07 when adjusted for non-recurring costs. This was an extremely positive report for the company, especially considering that Q3 revenue was just $20.3 million a year ago. Executives attributed the growth to strong performance in battery and energy products.

Ultralife has the potential to continue its revenue growth throughout 2020 and in the long-term future. The market for lithium battery solutions will grow along with the rise of electric vehicles. Investors looking for an affordable lithium stock will find this to be a compelling portfolio addition in the final quarter.

Key Data:

  • 1 Year Price Growth: 89%
  • YTD Price Growth: 11%
  • 3 Month Price Growth: 12%

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.