Five stocks to watch including lithium giants SQM and Albemarle which trade at records

Five stocks to watch including lithium giants SQM and Albemarle which trade at records

Jessica Amir
Market Strategist

Summary:  If you are looking for stocks to watch, this six minute video covers some potential companies to keep your eyes on. Including Lithium miners SQM and Albemarle, with their shares trading in record high neighbourhood as the lithium market remains tight and is expected to support lithium prices into 2023 according to SQM. Plus why watch stocks such as; iron ore major Fortescue amid the latest in China, copper play Oz Minerals with buy orders mounting, Ross Stores - the discount department store ahead of Christmas shopping and Cisco following its better than expected results.

SQM (SQM) is the world’s 2nd biggest lithium company and shares are trading at a record all time high up 95% this year - and for good reason. It sees lithium prices staying higher and demand rising 40%  this year. It also sees prices and demand continuing to remain strong in 2023. SQM also sees strong demand from the Chinese electric vehicle market, which is buttressing solid demand for lithium. This varies to Goldman Sachs thinking, as they say Chinese EV market will move toward a demand-constrained state over the next 1-2 years. As a house, Saxo, remains optimistic on energy commodities, including lithium however we continue to monitor the situation. The risk is that there is a global recession  or oversupply kicks in. Goldman Sachs believes the lithium price in China will continue to rise into 2023 before falling in second half of the year, as it sees the market moving into oversupply. SQM makes about 33% of its revenue from lithium and the remainder is from fertizliers. And both markets are currently tight.

Another lithium stocks to watch is Albemarle (ALB). Its shares are also trading in all time record high neighborhood. They are up 21% this year buoyed by the lithium price being elevated. I guess what you need to consider is, companies like SQM and Albemarle have been growing their revenue by triple digits, and this is even ahead of China reopening. 

Fortescue (FMG) is Australia’s biggest iron-ore-only producer, and it makes the majority of its revenue from China. Fortescue Metals shares have strongly rebounded this month, rising up 32%, after the iron ore price rose about 23% this month with China announcing a series of policies to rescue its property sector. However, COVID cases in China are picking up, and one region near Beijing has asked residents to stay home. So, there are concerns China will clamp down on restrictions, which could see the iron ore price pull back, along with shares in iron ore companies. But we will have to wait and see. 

Oz Minerals (OZL) is also front a centre with a strong increase in appetite for its shares, after BHP increased its takeover offer to $6.4 billion for copper company. This reflects the hungry to move into copper, given copper is a vital metal in electricity networks, electric vehicles, and renewable energy. BHP currently makes 26.7% of its revenue from Copper but wants to increase that. BHP also makes 24.6% from coal, and 48.7% from iron ore. As a house we are bullish on copper long term, given demand is expected to rise about 60% by 2040. The Copper price is up 11% from its July low with supply showing signs of tightening. For copper to potentially move higher, from $3.63, you might need to see it break over the $4 to $4.05  area, which could be a critical momentum changing resistance level, that might change things in Copper around.

Ross Stores (ROST) is on watch with traders expecting solid Black Friday sales. Ross Stores shares are up 17% this month with the extra kick coming from the retail company upgrading its fourth quarter outlook. Its shares are now now trading up 62% off their low and are back at November 2021 levels. The discount department store is seeing sales momentum improving. For the year ahead, consensus is that 2023 sales growth will be flat, but profit growth is expected to marginally improve.

Cisco (CSCO). It’s a $196 billion computer network giant, and its shares have continued to rally up off their two-year lows after the company reported stronger than expected earnings results and upgraded its full-year forecast. Recurring revenue from its new offerings rose to more than $23 billion on an annualized basis, with greater availability of chips helping Cisco fill more orders too. For total full 2023 year revenue, Cisco sees it rising 6.5%, which is more than its prior outlook (of 6%) and more than market expectations. On the other hand as for its expenses, like a lot of tech companies like Twitter, Meta and Amazon, Cisco is feeling the inflation and interest rate pain, so plans to cut 5% of its employees (amounts to about 4,000 people). From a technical perspective its shares are also worth watching too, particularly on the weekly and monthly charts as it looks like buying is picking up.

To find out more about the these companies or other opportunities, head to Saxo's Platform. 

For a global look at markets – tune into our Podcast.



The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.