This EV-related ETF soared in January, analysts give stocks big upside
By Michael Jordan 8 months agoA single EV-associated trade-traded fund just experienced its greatest 7 days in nearly a 12 months, and also outperformed in January – soaring 20.66%. The Global X Lithium & Battery Tech ETF was up nearly 8% last 7 days – its greatest week due to the fact March 2022, according to CNBC analysis. It also marked the fund’s fourth straight weekly achieve. Which is a turnaround from its roughly-30% loss in 2022. EV makers in the ETF, these as Tesla , BYD and Lucid , led the gains this yr, jumping 40%, 27% and 71% respectively in January. Lithium and EV battery producers, these kinds of as Albemarle and CATL , also did well, soaring 30% and 18% respectively. Lithium is a significant component of electrical vehicle batteries. Automakers have been in the highlight this thirty day period, with Tesla slashing costs to improve desire and Ford following accommodate . Analysts say Tesla’s rate cuts could spur an EV pricing war . Employing FactSet, CNBC Pro screened the World wide X Lithium & Battery Tech ETF for shares that analysts say have likely upside of at the very least 10%, on ordinary, and get scores from in excess of 40% of analysts covering them. These 10 stocks turned up on the screen. EV makers Rivian , Lucid and Tesla designed the record. Analysts give all 3 considerable possible upside, in accordance to Factset. Rivian shares are witnessed rising by 100% above the subsequent 12 months on regular, although Tesla has 13% upside, and Lucid has 18% prospective upside, in accordance to analysts. Lucid shares have currently jumped in excess of 70% so much this yr. On Friday by yourself it surged 43% amid market speculation that Saudi’s Community Investment Fund preferred to acquire out the corporation. Bank of The usa in a Jan. 30 notice stated that Lucid “is one of the most beautiful among the the universe of get started-up electric powered car or truck (EV) automakers and also a relative aggressive risk.” “We consider LCID at present has more pieces of the puzzle in spot and in course of action than most of its peers which, steered by a administration workforce with amazing expertise, must drive the corporation extra properly from concept to commercialization,” explained the bank’s analysts. Analysts are also bullish on Warren Buffett-backed Chinese EV maker BYD, giving it 36% upside opportunity. More than 75% have a purchase rating on the stock, which has now climbed 27% in January. Battery makers Freyr and Enovix Corporation stood out for obtaining the major prospective upside, at 108% and 285% respectively. Each are also popular among the analysts, with Enovix the only company on the listing to have a 100% acquire rating from analysts. Goldman in a the latest take note claimed that U.S.-detailed Freyr has the major upside prospective amid EV-related shares after the firm introduced options to extend in the U.S. — CNBC’s Michael Bloom contributed to this report.