Forget Albemarle: Buy This Magnificent Mining Stock Instead
In many ways, lithium miner (NYSE: ALB) and copper miner Freeport-McMoRan (NYSE: FCX) have a lot in common. Both are beneficiaries of the growth of electric vehicles, and both are mining metals that could rise in price due to an imbalance of demand over supply. That said, Freeport McMoRan is a better stock to buy. Here's why.
There's no debate over why the market has gotten excited about lithium in recent years. Its use in electric vehicle (EV) batteries is the key marginal demand driver for the metal and, ultimately, Albemarle's earnings. An example of the level of Albemarle's sensitivity to EV demand comes from a quick look at its sharp decline in revenue in 2024.
This is because the price of lithium has come down from above $80 a kilogram at the start of 2023 to around $15 a kilogram at the start of 2024 and to just above $10 a kilogram at the start of writing. The decrease is occurring due to reduced expectations for electric vehicle (EV) production in 2024. For example, S Global cut its 2024 EV production forecast by 10% from January to June.
Source Fool.com
Albemarle Corp Stock
Currently there is a rather positive sentiment for Albemarle Corp with 33 Buy predictions and 5 Sell predictions.
With a target price of 147 € there is a hugely positive potential of 92.06% for Albemarle Corp compared to the current price of 76.54 €.
