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Top Lithium Stocks To Watch in July

As July continues forward, which lithium stocks do investors have their eyes…
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As July continues forward, which lithium stocks do investors have their eyes on?

Lithium stocks are a sector that we mention a lot on this site. Compared to gold stocks and silver stocks, lithium often can feel less popular. Little do many investors realize, lithium is one of the fastest growing materials at the moment. Recently we have discussed copper stocks a lot on goldstocks.com, and lithium stocks are performing well for a similar reason.

Now you might be wondering, what is that reason? Well, lithium stocks are going up in value because of electric vehicles. The EV market has been growing strong year after year, with millions of them already on public roads. Most production electric vehicles use lithium-ion batteries within the powertrain. So as the demand grows for EVs, the demand for lithium grows as well.

Lithium is used in more than just electric vehicles. There is a large variety of products that use lithium-ion battery technology. This has made lithium one of the most in demand materials in the world right now. Back in January, President Joe Biden announced a commitment to replace the federal government’s 650,000 vehicles with EVs. Biden also stated that the U.S. government intends on achieving net-zero emissions by 2050. This will just help the lithium market grow even more, possibly causing its price to increase over time. As the price of lithium grows with its demand, there are many lithium stocks to watch. These can be lithium mining companies or battery corporations. Let’s take a look at three lithium stocks that are performing well in mid-July.

Top Lithium Stocks To Watch

  1. Lithium Americas Corp. (NYSE: LAC)
  2. Piedmont Lithium Inc. (NASDAQ: PLL)
  3. Energizer Holdings Inc. (NYSE: ENR)

Lithium Americas Corp. (NYSE: LAC)

Lithium Americas Corp. is a mining stock that explores for mineral deposits. It actively holds interest in the Cauchari-Olaroz Project, Thacker Pass project, and more. These projects are located in Argentina and Nevada. The company’s lithium exploration has been very successful for the company.

On July 12th, Lithium Americas announced an investment in Arena Minerals Inc. The company acquired 42,857,143 subscription receipts of Arena Minerals at C$0.14 per receipt for a total US $4.8 million. This provides Lithium Americas the ability to grow its exploration in Argentina.

The President and CEO of Lithium Americas, Jon Evans said, “We look forward to working with Arena Minerals and Ganfeng to support the pursuit of resource exploration opportunities in Argentina. This investment will allow Lithium Americas to advance our long-term resource development plans while maintaining our team’s focus on execution at Caucharí-Olaroz and the Thacker Pass project.” On July 21st, this lithium stock is up more than 5.7% in the market. Will you add LAC to your list of lithium stocks to watch?

Piedmont Lithium Inc. (NASDAQ: PLL)

Piedmont Lithium Inc. is a lithium stock that explores and develops resource projects in the United States. Currently, it has a 100% interest in the Piedmont Lithium Project that covers more than 2,126 acres in North Carolina. It also possesses a 61 acre property in Kings Mountain, North Carolina for similar exploration purposes.

On July 21st, the company made a presentation to Gaston County commissioners and its community. This presentation reviewed its project scope and commitment to safety, sustainability, and environmental stance. The President and CEO of the company Keith Phillips said, “We were honored to present at last night’s meeting, and we welcomed the opportunity to provide an update on our company, our values, and our proposed project to the Gaston County commissioners and our community. We confirmed last night that we would submit our North Carolina state mining permit application in August 2021 as planned, and we look forward to addressing all of the questions that arise during the permitting and rezoning process.” PLL stock is up 15.43% on the same day of the announcement. Its volume is more than double its average on this day as well. Will PLL make your lithium stock watchlist?

Energizer Holdings Inc. (NYSE: ENR)

Energizer Holdings Inc. is a lithium stock you have certainly heard of before. This company specializes in batteries, lighting, and more. It offers lithium, alkaline, carbon-zinc, nickel, and more type batteries. These are sold under the Energizer and Eveready brands. These batteries are often used in the automotive space, as well as many others. Since it creates lithium batteries, it has been performing well in tandem with the lithium sector itself.

On August 9th, Energizer Holdings intends on releasing its third quarter results before the market opens. Financial and operational results often can affect the stock price of a company. On June 9th, the company announced the pricing of a 650 million euro public offering of 3.5% senior notes due 2029.

The net proceeds from the offering will fund the conditional redemption to redeem the 650 million in full, and related expenses. ENR stock has seen its fair share of ups and downs in the market throughout the last year. On July 21st, the company’s stock price is up about 2%. Will ENR enter your lithium stock watchlist?

Top Lithium Stocks To Buy?

There are many great options when looking for lithium stocks to buy. That is partially what can make the process so difficult. How do you know when to invest in lithium stocks? Well, looking at sector news and company news can be very useful when investing in this sector. Checking out what is going on with electric vehicles can be helpful due to the ties to the lithium sector. So which companies will make your list of lithium stocks to watch in mid-July?

The post Top Lithium Stocks To Watch in Mid July appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

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Author: Joe Samuel

Energy & Critical Metals

Nio Is Doing Well Compared to Tesla at a Similar Point

Investing in Nio (NYSE:NIO) stock continues to make sense, in my opinion. For fundamental investors, that is true at least. Because in terms of the underlying…

Investing in Nio (NYSE:NIO) stock continues to make sense, in my opinion. For fundamental investors, that is true at least. Because in terms of the underlying business execution, Nio is doing very well.

NIO StockSource: Carrie Fereday / Shutterstock.com

Thus, if you believe that the strength of business behind a given stock is what should ultimately propel prices upward, Nio is a smart bet. 

In Nio’s case, this means that investors should look at production and deliveries as a reasonable bellwether for its strength. Comparing those figures to industry standard-bearer Tesla (NASDAQ:TSLA) is particularly useful. 

Strong Business

It’s important to remember that Nio remains a relatively young company. Nio began delivering the ES8 7-seater SUV in June 2018. It launched and began delivering several other models since. But the point here is that it essentially has a three-and-half year track record. 

When we compare that to Tesla, we start to get a clearer conception of what an important company Nio is shaping up to be. So, let’s look at Tesla’s progression and Nio’s progression on the basis of sales and deliveries at similar points.

To be clear, this cannot be an apples-to-apples comparison. Tesla pioneered the development of the electric vehicle industry. Nio benefited from Tesla’s early work, as did the entire EV sector. 

My point here is that I can’t compare Tesla’s Roadster sales with Nio’s ES8 sales. It wouldn’t be fair to either firm. Let’s handicap in favor of Tesla since they did the most early heavy lifting. In doing so, I’ll compare Tesla sales in 2019 with those at Nio in 2021.

2019 and 2021

These two periods weren’t chosen arbitrarily. In 2019 Tesla was selling three vehicles; the Model S, the Model X, and the Model 3. 

By 2021, Nio was also selling three vehicles; the ES8, the ES6, and the EC6. We can’t make any perfect comparison, but these points make the two companies somewhat comparable. 

The next logical question then is, who sold more vehicles at these points in time?

The answer is Tesla. In 2019 the firm collectively sold 195,125 vehicles. In 2021 Nio collectively sold 91,429 vehicles. That’s less than half as many vehicle sales. 

That may not exactly make a strong case for Nio stock. However, we need to remember these are not exactly analogous companies. Nio had been delivering vehicles for approximately 3.5 years and reached 167,070 cumulative sales of all of its vehicles by the end of 2021. 

Modern Comparison

Tesla’s Model S hit the market in 2012. Let’s call that the beginning of Tesla’s modern era. Through 2015, Tesla sold a cumulative 107,453 vehicles. 

At the end of 2015, TSLA stock traded near $46. It had sold 107,000 vehicles by that point. At the end of 2021, Nio stock traded near $31. It had sold 167,000 vehicles by that point. Again, not an apples-to-apples comparison, but an interesting note. It does suggest that Nio is relatively underpriced. 

That is also a sentiment being echoed by some on Wall Street.

Macquarie On Board

Macquarie analyst Erica Chen recently initiated coverage of Nio, giving it an “outperform” rating. She gave it a target price of $37.70, substantially higher than its current price of nearly $29. 

Average price targets for Nio across all of Wall Street sit near $59 overall. Again, that suggests it could be a very strong choice at present. Most of the financial world believes in Nio and its business.  

What to Do With Nio Stock

I continue to believe Nio stock is buy worthy, or investment grade. Nio sales are projected to grow at approximately 50% for the next several years. Unit sales growth for EVs hit 180% in China in 2021. Nio sells almost all of its vehicles in China. It has a strong position in a particularly strong market.

It’s hard to bet against Nio now, and you probably shouldn’t. 

On the date of publication, Alex Sirois 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.

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Energy & Critical Metals

QuantumScape Stock Remains Long-term Play but Worth the Ride

There are a few reasons to believe QuantumScape (NYSE:QS) stock may be one to avoid right now. It hasn’t had a strong start to 2022. In fact, it’s…

There are a few reasons to believe QuantumScape (NYSE:QS) stock may be one to avoid right now. It hasn’t had a strong start to 2022. In fact, it’s down from $23 to below $18 since the month began. More importantly, it has halved since mid-November.

A sign for QuantumScape (QS).Source: Michael Vi / Shutterstock.com

And the solid-state battery firm was a massive disappointment from a price appreciation perspective overall in 2021. It basically shed two-thirds of its value throughout 2021.

But it’s a long-term play. After it burst onto investors’ radar following a SPAC listing in third quarter 2020, it was red hot. The market seemed to act as if QuantumScape was destined to commercialize a solid-state EV battery immediately following its inception.

It didn’t but that doesn’t mean all is lost.

QS Stock is Long-Term Bet

The truth is that QuantumScape won’t likely reach commercial scale operations until fiscal year 2025. That’s not news. It is the same long-term bet it always was in solid-state EV battery production.

So why should investors care at this point? After all, the time horizon is long and QuantumScape has no guarantee of success in developing such a battery. Well, for one, QuantumScape did hit developmental milestones quite quickly.

Its 10-layer cell maintained at least 80% energy retention after 800 cycles following extensive testing. The firm was confident that its technological prowess exceeds that of other competitors. CEO Jagdeep Singh said, “We believe no other player has demonstrated equivalent performance with solid-state or lithium-metal battery technology.”

Yet, the market has soured on QS stock nevertheless. That’s understandable given the time horizon for any potential massive payoff. There’s a long time between now and 2024-2025 when commercialization is expected.

QuantumScape could fail. Other competitors could pull ahead of the firm and commercialize solid-state EV batteries first.

Skepticism Dominates Thinking

QuantumScape hit its development goals this year. Based on that it should ostensibly trade higher. But the market is seemingly waiting for it to fail. Back in November the firm announced that it had achieved its 2021 goals ahead of schedule.

You can’t really find much fault in a firm that achieves a strategic plan ahead of pace. But the market is simply waiting for QuantumScape to fail. That is evidenced by the high short interest in QS stock which currently sits at 16.25%. That is attributable to the notion that competition is gaining.

True, QuantumScape does have competition in the solid-state space. Solid Power (NASDAQ:SLDP) went public in December. Like QuantumScape, it is a SPAC which will enter the game flush with capital for expansion and development. Its balance sheet shows more than $500 million in cash equivalents.

Further, Toyota (NYSE:TM) remains a serious competitor in the space. It shouldn’t be taken lightly. In fact, Toyota recently promised that it too will produce commercial solid-state batteries by 2025.

Stationary Apps Widen Market

The other news which could send QS stock up soon is that it is moving into the stationary power market. QuantumScape announced that it is partnering with Fluence Energy (NASDAQ:FLNC). The partnership is intended to introduce solid-state battery technology into stationary power applications.

The news doesn’t mean that QuantumScape has forsaken EV applications. Rather, it means the company now has a larger total addressable market opportunity. Thus, greater potential future revenue streams.

Again, QS stock remains a long-term play. The market realizes that it faces competition between now and commercialization.

It looks like a strong choice for investors keen on capitalizing on the niche. But another strategy could be to buy several competitors in the space and reduce holdings as time moves on.

But I like QS stock now because it has increased its potential with the recent partnership with Fluence Energy. Further, I really like QuantumScape because it met its strategic goals ahead of schedule.

There’s something to be said for companies that lay out a framework, put their noses to the grindstone, and deliver. That gives me longer-term confidence in the shares.

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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EVGO Stock Is Just Too Good to Ignore at These Prices

EVgo (NASDAQ:EVGO) stock has shown massive volatility over the past 14 months. 
Source: Sundry Photography / Shutterstock.com
It’s very difficult to…

EVgo (NASDAQ:EVGO) stock has shown massive volatility over the past 14 months. 

EVgo fast charging stationSource: Sundry Photography / Shutterstock.com

It’s very difficult to pin down where it is going. It’s easy to assume volatility will continue, but that doesn’t do potential investors much good.

They want ideas they can agree or disagree with. They can make decisions based on that. 

My feeling is that EVgo should rise moving forward. It is essentially very close to an all-time low price, but fundamentally reasonable.

It should grow, and thus its price should rise. Let’s look at the factors indicating that should be the case. 

Revenue Growth Ahead

Stocks like EVgo move based primarily on underlying revenue growth: If sales rise, it’s generally true that prices rise.

Operational efficiency and profitability are issues to be tackled later on. It’s a tried and true test within this stock sector. 

By that measure, EVgo simply looks attractive. The firm is expected to record approximately $21.06 million in revenues in 2021 when all is said and done. That figure is expected to balloon to $54.37 million in 2022. So, if revenue growth piques the market’s interest, EVGO ought to bounce back.

Frankly, this makes sense. EVGO stock trades around $8 as I write this. So, logically it should move significantly higher if revenue more than doubles in the coming year.

In fact, if P/S ratios simply remain where they are, EVgo will more than double.

Remember, it has traded at $20 before while its sales levels were lower. Based on these simple ideas alone, there’s a lot of reason to believe in a bullish narrative for the company.

In fact, the average target price for EVGO stock sits above $18. That looks easily achievable based on what I’ve just noted regarding this year’s revenues and P/S ratios. 

Broader Catalysts in Place

EV charging stocks surged in November. Back then it looked like EV charging stocks were about to have their season.

It looked like the structural factors had all fallen into place for the sector to establish a news floor price.

EV sales were and remain strong. EV adoption appears to be the way forward with legacy manufacturers upping their investment in electrification.

Biden’s infrastructure bill reinforces the notion: It earmarks $7.5 billion for building the electric vehicle charging network over the next five years.  

As a result, EV charging stocks soared. But the rally didn’t last. The rapid rise spooked investors as many characterized it as overzealousness on the part of the market.

EVGO stock dropped from $19 on Nov. 11 back to $10 as rapidly as it increased to that high. That causes serious uneasiness on the part of investors. 

There’s no way to predict where the tide will swell or ebb in this sector. But EVgo prices are low now and it doesn’t seem that they should decline further. 

Wall Street Cautiously Optimistic

Analysts with both Needham and JPMorgan (NYSE:JPM) anticipate EVgo to be a long-term winner.

Needham analysts like the company’s high-traffic metropolitan area strategy and partnerships. They state that: “These factors, combined with the company’s disciplined expansion strategy, provide EVgo with industry-leading asset utilization and strong operating leverage.”

However, they didn’t issue a target price for EVgo citing overly aggressive Wall Street expectations. Meanwhile, JPMorgan gave EVGO a $20 target price earlier in December for many of the same reasons I discussed earlier. 

What to Do

I firmly believe EVgo is going to move higher again soon. Current prices combined with expected revenue growth make it a near certainty. 

EV charging stocks have proven volatile. They will remain that way. But prices now are too good to pass up as it relates to EVgo. 

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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