Lithium producer Albemarle is the IBD Stock of the Day. Albemarle stock is currently in a buy range.
A pair of analysts hiked their price targets on the stock following Albemarle's increase of its full-year sales and profit forecasts last week. The company cited "continued strength in pricing" in lithium, a metal that has been in high demand thanks to the electric-vehicle boom.
SQM, a lithium miner based in Chile, was IBD's Stock of the Day on Monday.
Albemarle Stock
Albemarle stock leapt 6% to 259.30 in the stock market today. The stock remained in a buy range, less than 5% above a 250.25 buy point. The stock is also in a larger cup-with-handle base with a 273.78 entry.
Shares have a 97 Composite Rating. Their EPS Rating is 89.
Among other lithium stocks, SQM jumped 3.8% to 101.12. The stock offers an early entry at 99.84 from a too-low handle.
Livent surged 6.7%. The Global X Lithium & Battery Tech ETF added 2.3% and found support at its 200-day line.
Analysts at Deutsche Bank and Credit Suisse raised their price targets on Albemarle stock by 6% after the company hiked its earnings-per-share outlook to a range of $19.25 to $22.25. That was well up from the prior range of $12.30 to $15. However, Albemarle stock fell after the news.
Albemarle Earnings
Albemarle mines or otherwise extracts lithium from the ground and processes it into battery-grade metal and other materials.
In a presentation from May, the company noted pressure from the automobile industry to "accelerate lithium supply growth." Albemarle also recently announced plans to build a lithium-production "megasite" in the U.S.
The company's second-quarter earnings last week beat Wall Street's expectations. The company raised its full-year sales forecast to $7.1 billion to $7.5 billion, up from an earlier forecast of $5.8 billion to $6.2 billion.
"The supply-demand balance has remained tight in the markets we serve," Albemarle CEO Kent Masters said during the company's earnings conference call. "Strong market prices and our continued success in contract renegotiation drove the tremendous strength we are experiencing in our lithium business."
