7 Battery Stocks to Beat the September Market Slump

With EV and other renewable stocks in the spotlight, finding the best battery stock picks can be difficult.

september is historically the worst month for markets Since 1928, the S&P 500 has fallen a median of 0.42% over the month. It has provided positive returns just 44.7% of the time for almost a century.

However, that’s not all the bad news. During the years in which the S&P has been down through August, it has fallen an average of 3.4% in September.

That said, this September has so far proven to be an anomaly. Through September 8, it was up 2.01%. That’s a very encouraging sign given the precedents that suggested it’s more likely to fail.

These are the battery stock picks to help investors get through what has traditionally been a month of down markets.

SUNRISE shelter him $296.97
FREY FREYR Drums $13.42
SQM Chemical and Mining Society of Chile $108.75
LACQUER Lithium Americas $31.64
QS QuantumScape $11.52
GNENF ganfeng Lithium $8.60
PCRFY panasonic $8.08

Albermarle (ALB)

Source: Igor Golovniov/Shutterstock.com

shelter him (NYSE:SUNRISE) is easily one of the best battery picks. The Charlotte, North Carolina company is a leading lithium producer and a well-known, stable option for investors.

Albemarle has established a leadership position in the new automotive economy that is set to feature electric vehicles largely. In other words, it’s a game of picks and shovels in continuous EV growth.

ALB stocks have had a particularly strong 2022. It is up 23% at the time of writing, while the S&P 500 is up 16.5% over the same period.

September has seen much the same for Albemarle, who is up almost 11%, having risen from $260 to $290.

At the end of August, the company announced a corporate restructuring intended to better capitalize on lithium demand. The market has responded positively to the news that followed a strong earnings report.

Freyr Battery (FREY)

A vector illustration of a battery with swirling neon lines;  battery forever

Source: MarySan / Shutterstock

FREYR Drums (NYSE:FREY) stocks should find a welcome audience among green investors. The company develops cost-competitive, high-density lithium-ion batteries.

The company’s operations are powered by hydroelectric and wind power, giving it some edge for the truly green investor. Add to that, its roots in Norway and its headquarters in Luxembourg and its green credentials really add up, making it one of the best long-term battery options.

Those credentials are reflected in a price target that you have. 55% up over the current price of $12.50. FREYR Battery also has a unanimous ‘buy’ rating.

The good news is that FREY shares are supported by strong results in the most recent quarter. The company reported a net income of $4.7 million, above a $8,036 million net loss past year.

Chemical and Mining Society of Chile (SQM)

Chemical and Mining Society logo displayed on a mobile phone with the company's website.  Stock of square meters

Source: madamF / Shutterstock.com

As you may have guessed from its name, Chemical and Mining Society of Chile (NYSE:SQM) is a mining stock, but that doesn’t mean it’s not among the best battery stock picks. The company has more diversified operations than Albemarle and both firms are considered battery stocks due to lithium mining.

And just like ALB stock, SQM stock has been a strong performer in 2022. In fact, it has more than doubled from $50 to over $110.

This strong price appreciation is the product of the rapid increase in sales of lithium and derivatives. Chemical and Mining Society of Chile has increased this income massively 1,033% in Q2 YoY and 1,004% in the first half of this year.

The company is a prime example of what can happen when rapidly increasing demand meets increasing production.

Lithium Americas (LAC)

a lithium mine

Source: Shutterstock

Lithium Americas (NYSE:LACQUER) has not proven to be as profitable as the other lithium mining stocks on this list in 2022.

However, it is still slightly higher this year, which is a feat in itself. Despite the fact that other lithium stocks have outperformed, LAC stocks have a strong upside, possibly more so than the other best battery stock picks we have covered.

The Vancouver-based firm is developing three lithium mining projects. Two of which are located in Argentina and the other in Nevada.

The company does not yet produce lithium. That said, the shares are currently trading at $31 and LAC shares have a price target of $35. That strongly suggests that investors fully believe the company will mine significant amounts of lithium.

The company continues to explore the separation of its operations in the United States and Argentina. If done, that could make its operations in the US particularly attractive, as Thacker Pass, where the operations exist, is the largest known lithium resource In the USA

quantum landscape (QS)

A signal for QuantumScape (QS).

Source: Michael Vi / Shutterstock.com

I have to admit, I like the narrative behind it QuantumScape (NYSE:QS). The company ended up heavily criticized following its IPO in late 2020. In early 2021, a short sale report from Scorpion Capital sent the company’s stock tumbling.

Not good.

At the time, many investors were comparing the fledgling manufacture of solid-state batteries to a house of cards. It seemed that the company was headed for disaster. Fast-forward seven months and QuantumScape has proven the critics wrong.

By November, the company had released 10-layer battery cell test data showing 800 cycles at charge rates greater than 1 hour at 25 degrees Celsius. That meant that QuantumScape achieved its primary goal ahead of schedule just a few months after serious accusations were made against it.

Ganfeng lithium (GNENF)

a line of AA batteries to represent battery stock

Source: Shutterstock

just put, ganfeng Lithium (OTCMKTS:GNENF) the action has a huge advantage.

Shares of the Chinese lithium producer are trading at $8.30 at the time of writing. However, his target price is $87.32. The company is trying to be everything to everyone within the lithium supply chain.

lithium ganfeng operations run the gamut from raw material production to chemical refining, battery manufacturing and storage, and recycling.

most recent of the firm earnings report shows impressive numbers. Those figures include operating income that increased 234%, leading to net profit that increased 956%.

Those earnings were not audited, which may explain why GNENF shares remain undervalued.

Panasonic (PCRFY)

A Panasonic (PCRFY) sign hanging in Beijing, China.  generation z

Source: evidence/Shutterstock.com

The reason to consider investing in panasonic (OTCMKTS:PCRFY) The action is that the company is a massive supplier of EV batteries.

Panasonic has shipped more than 6 billion EV battery cells from its Nevada site that serves tesla (NASDAQ:TSLA) gigafactory in the state.

And in July the company announced plans to build a $4 billion battery manufacturing plant in Kansas. Therefore, Panasonic should logically remain an integral part of the continued development of the USEV sector.

Shares of PCRFY have plunged from over $11 in early 2022, to under $8 currently. Analysts believe that it should trade above $10. As EPS estimates continue to level off, it looks more and more possible.

As of the date of publication, Alex Sirois did not have (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.

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

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