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September is a notably inadequate month for investing. In simple fact, the development is so perfectly known that it has been dubbed the September Effect. The data supports the notion with the S&P 500 averaging a 1% decline in the thirty day period from 1928 to 2021. 

That’s the lousy news. 

The very good information is that as time has long gone on, the impact has turn into significantly less pronounced. More than the past 25 many years, September returns for the S&P 500 have averaged -.4% with the median monthly return being optimistic. 

2022 has witnessed the current market wrestle much more than common, with the S&P 500 down 2% so considerably this thirty day period.

Investors on the lookout to reverse that development ought to look at investing in the EV sector as there are notable winners there. Right here are some of the finest EV stock picks proper now. 

ALB Albemarle $288.16
NIO Nio $20.33
LAC Lithium Americas $28.63

Albemarle (ALB)

Supply: IgorGolovniov/Shutterstock.com

A single of the very best EV stock picks to conquer the September slump is Albemarle (NYSE:ALB). The Charlotte, North Carolina firm is a main lithium producer. That has made it a go-to fairness for buyers trying to find a picks-and-shovels expense in electric autos. Which is mainly because lithium is a essential element in the manufacture of lithium-ion EV batteries. In quick, Albemarle has founded a major placement in the new auto financial system. 

ALB inventory has executed exceedingly effectively this 12 months. It is up 23% at the time of composing. The S&P 500, on the other hand, stays off by 16.5%. 

The business intends to double down and seize the chance in lithium. At the close of August, Albemarle introduced a company restructuring supposed to superior capitalize on lithium need. The marketplace has responded positively to the news which followed a sturdy earnings report. 

Nio (NIO)

NIO logo, sign atop of North American headquarters and global software development center in Silicon Valley. NIO is Chinese electric autonomous vehicles manufacturer

Resource: Michael Vi / Shutterstock.com

Nio (NYSE:NIO) inventory has very long been just one of the most interesting electric vehicle investments. The Chinese company built a large amount of traders a great deal of cash involving 2020 and early 2021. It has arrive back down considering the fact that, but loads of area for optimism continues to be. 

Nio, like all Chinese EV manufacturers, has been deeply influenced by Covid-19 lockdowns and increasing inflation. The latter has built expansion stocks a great deal a lot less interesting even though the supply chain challenges have consistently rattled expectations. 

The great news is that in spite of Nio reporting reduced-than-anticipated earnings and weak guidance, profits impressed. It appears to be that buyers are prepared to give Nio the profit of the doubt going ahead in the hopes that the worst has passed. 

That implies that NIO stock, which is down sharply this month, could pop up speedily and prove a vibrant spot in what is normally a challenging thirty day period for investing. 

Lithium Americas (LAC)

rows of lithium ion batteries

Source: Lightboxx/ShutterStock.com

Lithium Americas (NYSE:LAC) inventory hasn’t accomplished improperly in 2022. In point, it has outpaced the broader markets by remaining flat in general. That hasn’t been as amazing as Albemarle or a several other select lithium equities. But in spite of the fact that other lithium stocks have done improved, LAC inventory has powerful upside likely. 

The purpose to believe that relates to the a few lithium mining tasks the Vancouver-centered organization is building. 

The organization does not yet make any lithium. On the other hand, LAC inventory presently trades for fewer than $30 with a concentrate on price tag of $34. That strongly suggests buyers believe that that the organization will mine sizeable amounts of lithium. 

But the serious cause I imagine traders really should look at it as a person of the best EV stock picks is that the organization carries on to explore a separation of its U.S. and Argentina functions. If carried out, its U.S.-dependent shares will grow to be specifically interesting as Thacker Go, wherever the operations exist, is the most significant-identified lithium source in the U.S. 

The U.S. is pushing to reshore very important industries. There is small doubt that shares in lithium stocks with means sourced from within the U.S. will command better rates than all those from lithium sourced from China. Thacker Go could confirm to be a phenomenal strategic resource as these supply chain reshoring initiatives participate in out in the EV sector. 

On the day of publication, Alex Sirois did not have (either immediately or indirectly) any positions in the securities described in this write-up. The thoughts expressed in this article are all those of the writer, subject matter to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal inventory investing type is targeted on lengthy-phrase, purchase-and-keep, prosperity-building inventory picks.Owning labored in several industries from e-commerce to translation to training and making use of his MBA from George Washington College, he brings a varied set of capabilities as a result of which he filters his producing.

The post 3 EV Stock Picks to Beat the September Industry Slump appeared initially on InvestorPlace.

The views and views expressed herein are the views and viewpoints of the author and do not necessarily mirror people of Nasdaq, Inc.