Do You Have These Top Lithium Mining Stocks On Your Watchlist?
Lithium mining stocks are a hot commodity in the stock market right now, as lithium is an essential component in the production of electric vehicles. As the demand for electric vehicles grows, so does the demand for lithium. Lithium mining stocks have been on the rise in recent years, as investors seek to cash in on this growing industry. This is evident with top lithium stocks such as Albemarle (NYSE: ALB) and Standard Lithium Ltd. (NYSEAMERICAN: SLI). Over the last 5 years, shares of both lithium mining stocks have increased by 123% and 617%, respectively.
However, there are obviously risks associated with investing in lithium mining stocks. For one, the price of lithium is highly volatile and can fluctuate wildly in response to news events and changing market conditions. Additionally, lithium mining is a relatively new industry, and there is still a great deal of uncertainty surrounding it. Despite these risks, however, many investors believe that lithium mining stocks can be worth paying attention to right now.
As countries worldwide continue to increase their efforts against climate change, EVs are gaining mainstream appeal. By and large, the jump from conventional combustion engines to electric ones has and continues to be a go-to strategy for reducing global emissions. In fact, just this year President Joe Biden signed the Defense Production Act to ramp up domestic production of precious metals like lithium continuing to drive investor interest in lithium stocks. Considering that, here are three lithium mining stocks to watch in the stock market today.
Lithium Mining Stocks To Watch Right Now
- Lithium Americas Corporation (NYSE: LAC)
- Sociedad Quimica y Minera de Chile (NYSE: SQM)
- Livent Corporation (NYSE: LTHM)
Lithium Americas Corporation (LAC Stock)
Starting off the list today is Lithium Americas Corporation (LAC). In short, Lithium Americas focuses on advancing lithium projects in Argentina and the United States to production. Specifically, in Argentina, Caucharí-Olaroz is moving towards first production and Pastos Grandes reflects regional growth. Meanwhile, in the U.S., Thacker Pass has gotten its Record of Decision and is advancing towards construction.
Late last month, the company reported its financial and operating results for the second quarter of 2022. In it, LAC posted a loss of $0.12 per share on revenue of $0.0 million. Analysts’ consensus estimate was a loss of $0.14 per share. As a result, shares of LAC are up over 33% in the last month of trading. As of Tuesday afternoon LAC stock is trading at $28.02 per share. With the buzz surrounding lithium right now, does LAC deserve a spot on your watchlist?
Sociedad Quimica y Minera de Chile (SQM Stock)
Next up, we have Sociedad Quimica y Minera de Chile (SQM). For starters, SQM is a global chemical company that focuses on developing and producing a wide variety of products. Specifically, it mainly consists of lithium, potassium nitrate, iodine, and thermo-salts. With its industry-leading portfolio, the company focuses on the health, nutrition, renewable energy, and tech industries. In fact, The company is also one of the world’s largest lithium producers. As a result, it wouldn’t surprise me if investors add SQM to their lithium stocks watchlist.
Moving along, back in May the company announced a beat in its first quarter 2022 earnings. In the report, Sociedad Quimica y Minera posted an earnings per share of $2.79 per on revenue of $2.0 billion. For context, the wall street consensus earnings estimate was earnings of $1.23 per share on revenue of $1.3 billion. Furthermore, the company recorded a revenue increase of 282.2% year-over-year during the same time period.
SQM’s CEO, Ricardo Ramos commented in his note to shareholders, “Today we can proudly report that we are a leader in the lithium industry. We have almost tripled our production levels in three years while we have significantly decreased the extraction of brines. We are the most integrated lithium producer in its country of origin, delivering high-quality products that can be used directly in the production of high-end battery components.” Since the last six months of trading, SQM stock is up over 65% and is currently trading at $97.27 on Tuesday.
Livent Corporation (LTHM Stock)
Lastly, let’s dive into Livent Corporation (LTHM). For the uninitiated, Livent is a fully integrated lithium company. The company manufactures lithium for a range of lithium products such as lithium-based polymers, specialty polymers, and chemical synthesis applications. LTHM continues to meet the most demanding technical requirements, fueled by its high-performance product solutions, industry-leading material science expertise, and fully integrated supply chain. Moving along, Livent has been in the headlines this month after reporting a beat on its second quarter 2022 earnings.
Diving in, the company reported earnings per share of $0.37 on revenue of $218.7 million. For comparison, analysts’ estimates for this quarter were earnings of $0.30 per share on revenue of $209.3 million. Also, revenue increased 114% year-over-year during the same quarter in 2021. With that, the company also provided some guidance for its 2022 full-year revenue. Specifically, the company reported its estimated 2022 revenue to come in between $800 million to $860 million.
Previously, the company announced its previous guidance was revenue of $755.0 million to $835.0 million. Meanwhile, Wall Street’s revenue estimate is $813.49 for the 2022 full year. Meaning, that the company raised its revenue guidance for the year. As a result, shares of LTHM stock are trading at $26.24 per share on Tuesday. Now, would you add LTHM to your radar?
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