The S&P/TSX Composite Index has been on a rollercoaster this year. After several ups and downs, the Canadian benchmark index is up by 4.56% year to date at the time of this writing. More notably, the last few days of trading saw a few consecutive winning days for the market, with tech, energy, and metals mining sectors providing the boost.
As the focus on going green increases, publicly traded companies across various industrial spaces stand to benefit, growing shareholder value. Investing in electric vehicle (EV) stocks and battery metal stocks can offer investors good exposure to greener spaces. Today, I want to explore whether betting on EV stocks or battery metals stocks presents the potential for better investment returns.
To this end, I will discuss one top stock from each space to paint a clearer picture.
Lion Electric
Lion Electric (TSX:LEV) is a $559.76 million market capitalization vehicle manufacturer, primarily focusing on the production of electric school buses, trucks, and other commercial vehicles. With little competition in the EV space in Canada, its focus on commercial EVs gives it a niche it can enjoy without competing against industry giants.
Besides a niche focus, it differs from other EV manufacturers in how it generates revenue. Where most companies sell directly to consumers, Lion Electric stock relies on recurring revenue from large corporations and governments.
That said, it is not a profitable company right now. As a small name, the venture capital stock is a riskier-than-average stock. As of this writing, it trades for $2.97 per share, down by 45% from its 52-week high. Despite its small presence, this EV stock can deliver stellar long-term returns as the broader industry grows.
American Lithium
American Lithium (TSXV:LI) is a metals and mining company primarily engaged in the exploration stage. The Canada-based company focuses on acquiring, exploring, and developing lithium deposits.
Lithium is the key ingredient for making batteries that power everything from EVs to smartphones and other portable devices that are an integral part of our lives. A small name in the mining industry, it has a $450.78 million market capitalization.
American Lithium stock is not the biggest Canadian lithium stock, but it’s worth watching closely. The company announced in July that it is making progress with its work in Macasuni, and the company’s chief executive officer Simon Clarke has said that American Lithium will launch several pilot operations soon.
Its focus on large-scale lithium projects in mining-friendly jurisdictions puts it in an excellent position to deliver stellar growth amid the rising popularity of the metal.
Foolish takeaway
Due to the growing popularity of going green, EV stocks and battery metals stocks will likely continue increasing shareholder value in the coming years.
With EV stocks, the focus is more on one particular segment. Investing in a battery metals stock like American Lithium, however, offers exposure to the rare metal that allows the underlying company to benefit from more avenues than the automotive industry.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
