Five battery stocks to watch as the EV market gets all charged up

Highlights

  • The gross profit of Tesla, Inc. (NASDAQ: TSLA) was US$2.88 billion in Q2 of fiscal 2021.
  • The revenue of Romeo Power, Inc. (NYSE: RMO) was US$0.92 million in Q2, FY21.
  • The stock value of QuantumScape Corporation (NYSE: QS) fell 55.6% YTD.

With the auto industry gearing up for a green transition, the demand for durable and energy-efficient batteries has grown exponentially. Lithium-ion batteries are currently the mainstay, but research and development are ongoing to build superior batteries for the future.

However, lithium-ion batteries are used in various other industries like defense, aviation, and electronics. Many battery companies have tied up with EV makers as they start investing in new technologies. As a result, battery companies have been increasingly on investors’ radar.

Here we look at five battery stocks in the market that may benefit from the shift to renewables.

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QuantumScape Corporation (NYSE: QS)

QuantumScape Corporation is based in San Jose, California. It is currently developing solid-state lithium-metal batteries for the EV industry.

The shares of the company traded at US$20.63 at 12:09 pm ET on Sep 8, down 6.99 percent from its previous closing price. The company has a market cap of US$8.54 billion, and a forward P/E one year of -105.62. Its stock value dropped by 55.6 percent YTD.

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The highest and lowest stock prices of the firm for the last 52-week were US$132.73 and US$11.25, respectively. Its share volume was 6,189,217 on September 7.

The loss from operations was US$49.62 million in Q2 of fiscal 2021, compared to a loss of US$14.22 million in the year-ago quarter. It reported a net income of US$80.98 million, compared to a loss of US$13.94 million in Q2 of fiscal 2020.

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Tesla, Inc. (NASDAQ: TSLA)

Tesla, Inc. is headquartered in Palo Alto, California, and it is one of the most popular names in the EV industry. The company manufactures electric vehicles and battery energy storage systems.

The stock of the company was priced at US$746.00 at 12:27 pm ET on Sep 8, down 0.92 percent from its previous closing price. The TSLA stock ticked up 3.17 percent YTD.

The market cap of the company is US$747.21 billion, the P/E Ratio is 388.49, and the forward P/E one year is 222.10. Its EPS is US$1.92.

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The highest and lowest stock price of the firm for the last 52 weeks were US$900.40 and US$329.88, respectively. Its share volume on September 7 was 20,039,830.

The total revenue of the company jumped 98 percent YoY to US$11.95 billion in Q2 of fiscal 2021. Its total gross profit was US$2.88 billion, compared to US$1.26 billion in the year-ago quarter.

On a non-GAAP basis, the net income of the company came in at US$1.6 billion, or US$1.45 per diluted share, compared to US$451 million, or US$0.44 per diluted share in Q2 of fiscal 2020.

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Romeo Power, Inc. (NYSE: RMO)

Romeo Power is a battery manufacturing company. It focuses on battery technology solutions like energy-dense battery packs. It is headquartered in California.

The shares of the company traded at US$4.79 at 12:37 pm ET on Sep 8, down 7.53 percent from its closing price of September 7.

The firm has a market cap of US$642.80 million, and a forward P/E one year of -6.17. Its stock value decreased by 72.88 percent YTD.

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The highest and lowest stock prices of the company for the last 52-week were US$38.90 and US$4.09, respectively. Its share volume was 3,768,355 on September 7.

The company reported a revenue of US$0.92 million in Q2 of fiscal 2021. Its cash, cash equivalents, and investments were US$267.7 million as of June 30, 2021.

The company reported a net loss of US$28.67 million, compared to a loss of US$7.02 million in Q2 of fiscal 2020.

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Plug Power, Inc. (NASDAQ: PLUG)

The Latham, New York-based Plug Power, Inc. develops hydrogen fuel-cell systems for EVs.

The stock of the company was priced at US$25.33 at pm ET on September 8, down 5.49 percent from its previous closing price. The stock plunged 16.69 percent YTD. The market cap of the company is US$14.59 billion, and the forward P/E one year is -65.37. Its EPS is US$-1.53.

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The highest and lowest stock price of the firm for the last 52 weeks were US$75.49 and US$10.92, respectively. Its share volume on September 7 was 12,472,380.

The net revenue of the company surged around 83 percent YoY to US$124.55 million in Q2 of fiscal 2021. Its gross billings jumped 75 percent YoY to US$ 126.3 million.

The company reported a gross loss of US$40.29 million, compared to a loss of US$15 thousand in the year-ago quarter. The net loss attributable to common shareholders came in at US$99.63 million, compared to a loss of US$9.41 million in Q2 of fiscal 2020.

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Source: pixabay

Livent Corporation (NYSE: LTHM)


Livent Corporation is based in Philadelphia, Pennsylvania, and is a wholly integrated lithium company. The company develops various lithium products, including batteries for EVs.

The shares of the company traded at US$25.035 at 12:59 pm ET on September 8, down 3.04 percent from its closing price of September 7. Its stock value increased by 37.49 percent YTD.

The firm has a market cap of US$4.05 billion, and a forward P/E one year of 184.43. Its EPS is US$-0.09.

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The highest and lowest stock prices of the company for the last 52-week were US$27.27 and US$7.39, respectively. Its share volume was 2,020,934 on September 7.

The revenue of the company soared 57 percent YoY to US$102.2 million in Q2 of fiscal 2021. Its GAAP net income came in at US$6.5 million, or US$0.03 per diluted share, compared to a loss of US$0.2 million in Q2 of fiscal 2020.

The adjusted EBITDA was US$16 million, an increase of 150 percent from the year-ago quarter.

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Bottomline

President Joe Biden's target to increase zero-emission vehicle sales by at least 50 percent of all automobiles sold in the country by 2030 has ignited hopes in the EV market and the ancillary sectors, including the battery industry. Analysts expect the EV market to grow at a rapid pace over the next few years with rising demand for electric vehicles.

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