Sociedad Quimica y Minera de Chile is the IBD Stock Of The Day amid renewed Iran war hostilities. On Monday, SQM stock flashed a bullish signal as it broke out to multiyear highs.

The Chilean mining company produces lithium, iodine and nitrates used in specialty fertilizers. The low-cost lithium producer benefits from the global adoption of electric vehicles and battery storage systems, which have gotten an extra lift as the Iran war lifts energy prices.

Meanwhile, the Iran war has led to a global fertilizer shortage. Higher oil prices raise the cost of producing nitrogen-based fertilizers, which depend heavily on natural gas and petroleum feedstocks.

Analysts expect an SQM earnings explosion this year, FactSet shows. Earnings and sales collapsed in 2024. Both recovered in late 2025 thanks to record iodine prices and rebounding lithium prices.

The company is set to report first-quarter earnings on May 26.

SQM Stock Tops Buy Point

U.S.-listed shares jumped 6.7% to 87.63 in Monday's stock market action. SQM stock cleared an 86.09 handle buy point in an 11-week consolidation, according to MarketSurge charts.

In late March, SQM stock soared above the 10-week moving average as the Iran war intensified. It has largely held above that line since the war broke out in late February while the major indexes tumbled below their 40-week averages until recently.

The relative strength line hit a 52-week high on the breakout, with a blue dot on their MarketSurge charts marking that bullish signal. A rising RS line, the blue line in the chart provided here, means that a stock is outperforming the S&P 500 index.

A 96 RS Rating means that shares outpaced 96% of all stocks in IBD's database over the past year.

Fellow fertilizer stocks CF Industries and Nutrien popped on Monday. Both are extended from their latest breakouts but have tested support at the 50-day line.

Lithium battery stock Albemarle jumped 8.45% to 188.32, breaking above a trendline entry and a short-term high of 184.60, both offering early entries within a recent consolidation.

Several mining stocks currently earn a spot on the IBD 50 list of top growth stocks.

Investors should be cautious about any buys in a volatile market, even those exhibiting relative strength.

SQM Earnings Recover — Explosion Ahead?

The IBD Stock Checkup tool shows that SQM stock holds a superior Composite Rating of 97 out of 99. IBD's Composite Rating rolls various fundamental and technical metrics into one easy-to-use score.

As earnings recover, the lithium battery stock carries an EPS Rating of 73 out of a best-possible 99.

On Feb. 27, Sociedad Quimica y Minera de Chile reported fourth-quarter earnings of 64 cents per share, vs. a loss of 42 cents the prior year. Revenue came in at $1. 324 billion, surging 23% year over year and accelerating from a 9% gain the previous quarter.

For the full year, revenue rebounded 1% from a 39% tumble in 2024. The company cited record-high lithium sales volumes.

Supply-demand balance began to improve in November 2025, management said. The market was significantly oversupplied in 2024, which caused lithium prices to crash.

Lithium Battery Market Seen Growing

"We continue to observe solid demand fundamentals," SQM's Chief Executive Officer Ricardo Ramos said in an earnings release. "We estimate that the lithium market could grow by approximately 25% this year, led by electric vehicles (EVs) and energy storage systems (ESS)."

The release made no mention of the ongoing Iran war, which broke out one day later and fueled a severe fertilizer shortage. But analysts have hiked EPS estimates price targets for SQM stock since then.

They now expect SQM earnings to nearly triple in 2026 as revenue booms 60%, FactSet shows.

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