Want exposure to battery-essential mineral lithium? If so, then you’ll want to take a close look at North Carolina-headquartered Albemarle (NYSE:ALB) stock.
Over the long term, ALB stock could move higher as Albemarle comprises is an ambitious lithium miner and has support from the U.S. government. Plus, Albemarle’s financial growth should enhance any anxious investor’s confidence in the company.
When the Wall Street Journal mentions a particular metal – which doesn’t happen every day – investors should pay attention. Just recently, the Journal reported on the Biden administration’s allocation of $2.8 billion toward projects favoring electric vehicle (EV) components.
Of course, this demonstrates the government’s support of lithium producers generally, such as Albemarle. After learning more about the company, you might be surprised to discover how lithium-focused Albemarle is – and how much money Albemarle is making from its operations.
What’s Happening with ALB Stock?
ALB stock is up for the year even while many stocks are in the red. That’s a good sign, and it’s also nice to know that Albemarle pays a forward annual dividend yield of 0.62%. That’s not likely to make you rich overnight, but it’s an added bonus for long-term shareholders.
What could take Albemarle to the next level and prompt further share-price appreciation? For one thing, there’s the Biden boost we just talked about. Or, maybe it will be this piece of news: Albemarle just earned a grant worth nearly $150 million from the U.S. Department of Energy (DOE).
This grant is part of a set of projects funded by President Biden’s Bipartisan Infrastructure Law. The funding will support the construction of a “new, commercial-scale U.S.-based lithium concentrator facility at Albemarle’s Kings Mountain, North Carolina.”
Albemarle’s Financials Are Unassailable
We shouldn’t call ALB stock a “can’t-lose” proposition. However, it’s much harder to lose money in an investment when a company has such strong government backing.
It’s also harder to lose money in a stock when the company is growing financially. Albemarle is a heavily lithium-focused business, with roughly 60% of the company’s net sales derived from the white metal. It’s a high-conviction market segment, and as we’ll now see, it can also be highly profitable.
If you need proof, just take a glance at Albemarle’s most recently issued quarterly financial results. During 2022’s second quarter, Albemarle’s net sales grew 91.2% to a whopping $1.48 billion. Also, the company’s adjusted earnings before depreciation and amortization (EBIDTA) increased 213.5% to $610.2.
Additionally, Albemarle’s adjusted diluted earnings per share (EPS) soared 287.6% to $3.45. With this battery of positive results, Albemarle is clearly poised to continue thriving amid America’s lithium revolution.
What You Can Do Now
Albemarle is a Biden-backed business with strong lithium exposure. Plus, the company’s financial growth is undeniable.
Until today, you might never have even heard of Albemarle. Now that you have access to the company’s essential stats – and if you’re ready to wager on a lithium-mining powerhouse – feel free to try a small stake in ALB stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.