The stunningly strong rally in lithium miner Albemarle (ALB) will continue this year. ALB stock broke out to start the week as its share price nearly tripled from its 52-week low.
Albemarle benefited from Scotiabank upgrading the stock, along with Lithium Argentina (LAR). SQM (SQM) also earned an upgrade. The analyst cited supply constraints in lithium for the bullish report.
In the data storage sector, Western Digital (WDC) is behaving like a semiconductor memory stock. WDC shares are near a 52-week high, up by over 600% return from their low. Stock markets are projecting storage suppliers to raise prices. They will capitalize on the short supply of high-speed storage. AI data centers are driving demand for SSD and m.2 storage. Companies might avoid the higher prices by buying “cold” storage instead. Hard drives offer more capacity but are slow. Still, higher prices should increase WDC’s profit margins.
Synchrony Financial (SYF) tested its 50-day simple moving average on Monday at below $80.00. While insiders consistently sold shares during its rally since November, President Trump’s 10% cap on credit card interest rates for a year sparked the sell-off.
Synchrony, Capital One (COF), and Bread Financial (BFH) would have no offsets if forced to limit rates. According to Morgan Stanley analyst Jeffrey Adelson, EPS for those firms would fall sharply.
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