雅虎香港財經 3 Battery Stocks to Turn $100,000 Into $1 Million: April 2024
The electric vehicle (EV) transition feels like it’s further along than where it is. Beyond macroeconomic concerns that may be keeping consumers out of the market, advancements in battery technology will be crucial for the mass adoption that is still the likely outcome for this sector. And that’s why now is a good time to invest in battery stocks.
Despite the proliferation of television commercials that are creating awareness, EVs currently make up about 9% of new car sales in the United States. That number is sharply higher from where it was just two years ago, but it’s not where it’s likely to go. For that to happen, issues like range anxiety, battery life, and charging time will have to be addressed.
Therefore, companies involved in battery production are playing just as critical a role today as they did when Tesla (NASDAQ:TSLA) was the only game in town. And battery technology is likely to evolve significantly by 2030 from where it is today.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you think of it like what’s happening in the chip sector, investing in EV companies is investing in the AI application, investing in battery stocks is like investing in the companies that make the AI application possible. That’s where the multi-bagger growth can come from, and here are three names to consider.
Albemarle (ALB)
Source: IgorGolovniov/Shutterstock.com
Albemarle (NYSE:ALB) in one of the world’s leading lithium miners with projects in Chile, Australia, and China. Lithium prices dropped in 2023 as weakness in the Chinese economy, and weaker-than-expected demand in the U.S. left the market oversupplied.
However, for the foreseeable future, lithium-ion batteries will remain the standard for battery electric vehicles (BEVs). Therefore, one way to invest in the future of EVs is to invest in companies that are helping get lithium to market.
The supply-demand imbalance may take some time to unwind. This is evident in the ALB stock chart. The stock is down 32% in the last 12 months after climbing to a record high at the end of 2022. Yet revenue was up 31% year-over-year (YOY) in 2023 and even earnings saw a slight 1% YOY gain.
Despite the belief that demand for EVs will grow in both China and the U.S., the lithium market is going through a price discovery stage. For its part, Albemarle announced it was going to be cutting capital expenditures in 2024, but this is a company that will be ready to ramp up production when conditions are more favorable.
Panasonic Holdings (PCRFY)
Source: testing/Shutterstock.com
Until recently, the bullish case for Panasonic Holdings (OTCMKTS:PCRFY) as one of the best battery stocks was its standing as one of the leading battery suppliers for Tesla. With Tesla deliveries slowing, that may not seem as impressive, but it is. Tesla is still far-and-away the market share leader in the U.S., and that won’t change soon.
And Panasonic is still part of Tesla’s plans in its growth. In 2023, Panasonic announced plans to increase production at Tesla’s Nevada gigafactory by 10% in the next three years. And the company has plans to expand its manufacturing footprint in the U.S. even further. All told, the company plans to quadruple its production capacity through 2031.
Plus, Panasonic is forming partnerships with other companies such as Lucid (NASDAQ:LCID). And it’s making investments in silicon-based and solid-state battery technology that will keep the company relevant as the landscape for battery design changes.
And if investors need another reason, consider that PCRFY stock is objectively cheap. The stock currently trades for about 7.3x forward earnings and has a dividend yield of about 1.9%.
QuantumScape (QS)
Source: rafapress / Shutterstock.com
QuantumScape (NYSE:QS) is a developmental-stage company that has over 300 patents and patent applications for its solid-state battery design. The company has a partnership with Volkswagen Group (OTCMKTS:VAGWY), and in its investor presentation QuantumScape noted it has commercial agreements with six automotive original equipment manufacturers (OEMs).
As many investors know, a solid-state battery addresses many of the concerns that consumers have about lithium-ion batteries. That is, they will have a longer range, charge faster, and have a longer overall life.
The company doesn’t have a product on the market yet but is on track for low-volume commercial production in 2024. And the company has the cash runway to ger there.
The bigger question for investors is when will QuantumScape turn a profit? That’s harder to answer, and therein lies the risk with QS stock. It’s also not the only company developing a solid-state solution. Nevertheless, if you’re a speculative investor, QS stock is one of the battery stocks to watch.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
It doesn’t matter if you have $500 or $5 million. Do this now.
The post 3 Battery Stocks to Turn $100,000 Into $1 Million: April 2024 appeared first on InvestorPlace.
