One of the best ways to make money in 2023 is by picking up red-hot bargain stocks in some of the hottest industries. Look at lithium stocks, like Albemarle (NYSE:ALB), for example. After a disgusting year, the stock exploded from about $210 to $287 in recent weeks. All thanks to earnings, and the fact the supply-demand story isn’t going away. In fact, it’s only going to get worse, with global leaders demanding millions of electric vehicles.
Or, look at Tesla (NASDAQ:TSLA). It was crushed last year. However, with deliveries and earnings improving, it’s just starting to show big signs of life in the bargain bin. Over the last few weeks, TSLA ran from about $100 to $190. We’re seeing similar bargains with dozens of other green-related stocks, artificial intelligence, technology, you name it… Better, after one of the roughest years on record, there are plenty of bargain stocks to be found. Here are three.
| LAC | Lithium Americas | $24.32 |
| PFE | Pfizer | $44.06 |
| MARA | Marathon Digital | $7.07 |
Lithium Americas (LAC)
I’ve mentioned Lithium Americas (NYSE:LAC) many times. That’s because I believe it could be an Albemarle-type giant. For one, the pullback in LAC appears largely overdone. Two, the electric vehicle boom, coupled with supply-demand issues should keep lithium prices elevated.
Three, the company has two high-quality assets, including its U.S. Thacker Pass mine, where the company expects to see an average EBITDA of $520 million. Lithium Americas also holds a 44.8% stake in an Argentinian asset, Cauchari-Olaroz, where the company expects to see an annual EBITDA of $308 million.
Wanting to unlock even more value, Lithium Americas recently announced a split into two separate entities. That would include an Argentina-focused lithium company owning Lithium Americas’ current interest in its Argentine lithium assets, including the near-production Caucharí-Olaroz lithium brine project in Jujuy, Argentina; and a North America-focused lithium company owning the Thacker Pass lithium project in Humboldt County, Nevada, and the Company’s North American investments.
Pfizer (PFE)
Pfizer (NYSE:PFE) is another one of the top bargain stocks to consider. At the moment, PFE is sitting at support dating back to late 2022. It’s also wildly oversold on RSI, MACD, and Williams’ %R. And from a current price of $44.06, I believe it could easily run back to $54. For one, there’s the longstanding COVID-19 vaccine story. It’s not going away – at least not anytime soon. Two, at 10x forward earnings, with a yield of 3.73%, PFE is a bargain. Three, analysts are bullish on the stock. With a buy rating, and a $75 price target, Cantor Fitzgerald for example says the pipeline could surprise.
Four, according to Pfizer CEO Albert Bourla, the company is preparing to launch several new products over the next 18 months. It’s also looking to go into China’s private market shortly. In addition, as noted by Barron’s, Pfizer “really wants to shift the discussion away from Covid and to the rest of its business. It projects that non-Covid revenue will rise 6% annually through 2025 and then increase at 6% or better each year through 2030, to at least $70 billion.”
Marathon Digital (MARA)
Marathon Digital (NASDAQ:MARA) is one of the riskier ideas on this list. All because of its dependence on the price of Bitcoin (BTC-USD). If BTC can push higher, mining stocks, like Marathon Digital are sure to follow. And that’s because MARA revenue is tied to the value of BTC. The more valuable BTC becomes, the better the mining stocks will do.
MARA, for example, just announced it produced 475 BTC in Dec. and a total of 1,562 BTC in Q4 2022. It also produced 4,144 BTC in 2022, a 30% year-over-year jump. As the value of BTC increases, so does the value of MARA’s mined coins.
Also, as noted by Investorplace contributor Chris Markoch, “The hash rate (which is a metric used to measure the market value of mining or computer power will only increase as the number of Bitcoin to be mined dwindles. And with most analysts saying that it will take until approximately 2040 for the last of the current two million remaining Bitcoin to be mined, MARA stock looks like a winner for the next decade.”
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.