The demand of battery-related products is set to rise exponentially in the comings years. According to a report, there would be over 250 million electric vehicles on the road by 2030, amid a rise in the demand for climate-friendly vehicles, emission policies and cost-efficient cars. Battery companies are also facing an increased demand for household energy solutions.
In this situation, some of the battery stocks mentioned below should be kept in mind while researching the market for growth and investment ideas.
Energizer is a famous company known for battery products. It owns portable lighting brands, car batteries and lights. The company has shown a strong growth potential. For 2020, despite the coronavirus effects, it expects up to 10% of year-over-year revenue growth and sees its adjusted FCF to exceed $300 million. The company also plans to increase its free cash flow to $400 million in fiscal year 2022. The stock is currently trading in the red mainly after a lawsuit filed by rival Duracell for making some claims about its products. However, the fundamentals of Energizer remain stock, as the company upped its guidance earlier this month. The company said it is seeing a higher demand in North American due to a rise in battery usage for cars.
Albemarle Corporation (NYSE: ALB) makes chemicals that are used in batteries. The company’s stock has shown strong signs of growth in 2020. Albemarle is a strong player in the market of battery-grade lithium. The demand for these batteries is set to increase in the future. The company is currently undergoing a $100 million cost-saving program and expects to realize $50-$70 million of savings in 2020. Another good news for the stock was U.S. Department of Energy’s decision to pick up the company as a critical partner for two lithium research projects. The company has secured purchase commitments for over 140,000 metric tons of its LCE production in 2025.
California-based Enphase Energy Inc (NASDAQ: ENPH) designs and sells software-driven home energy solutions and solar panels. The company’s stock jumped recently after it posted strong second-quarter results. After the quarterly report, Roth Capital Partners increased its price target for the stock to $90 from $70. Oppenheimer Holdings also increased its price target for the stock to $70 from $55. The company’s core business involves making a technology that convers solar power to AC power that is used in homes. In 2018, it acquired SunPower's microinverter business, which gave it a strong advantage in the market. The home energy market has a strong growth potential worldwide as users look for cost-efficient energy solutions, which includes solar panels.