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Here's Why You Should Buy Albemarle (ALB) Stock Right Now
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Shares of Albemarle Corporation (ALB - Free Report) have popped around 27% over the past three months. The company is benefiting from higher lithium prices and volumes, capacity expansion and cost-saving actions.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Let’s delve deeper into the factors that make this Zacks Rank #1 (Strong Buy) stock an attractive choice for investors right now.
An Outperformer
Shares of Albemarle have rallied 49.9% over a year against the 7.7% decline of its industry. It has also outperformed the S&P 500’s 5.3% decline over the same period.
Image Source: Zacks Investment Research
Positive Earnings Surprise History
Albemarle has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 22.5%, on average.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Albemarle for 2022 has increased around 85.8%. The consensus estimate for second-quarter 2022 has also been revised 86.4% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Strong Growth Prospects
The Zacks Consensus Estimate for earnings for 2022 for Albemarle is currently pegged at $11.11, reflecting an expected year-over-year growth of 175%. Earnings are also expected to register a 176.4% growth in the second quarter.
Growth Drivers in Place
Albemarle is benefiting from higher volumes in its lithium business on continued recovery in global economic activities. Healthy customer orders, new capacity and plant productivity improvements are supporting volumes. Higher lithium prices are also supporting its performance. Tight supply conditions and growing demand for electric vehicles are driving lithium prices. The company’s bromine business is also gaining from strong demand and favorable pricing led by tight market conditions. Albemarle is seeing strong demand for flame retardants.
The company recently raised its full-year 2022 guidance to reflect the completion of additional lithium contract renegotiations. It now expects net sales in the range of $5.8-$6.2 billion for 2022, up from the previous outlook of $5.2-$5.6 billion. Albemarle also sees adjusted earnings per share in the range of $12.30-$15, higher than the prior guidance of $9.25-$12.25. Adjusted EBITDA for the year is now forecast to be $2.2-$2.5 billion, up from the prior view of $1.7-$2 billion.
The lithium adjusted EBITDA for the full year 2022 is now projected to rise roughly 300% year over year, up from the earlier outlook. Average realized pricing is now anticipated to be up around 140% year over year resulting from the implementation of index-referenced, variable-price contracts and improved market pricing.
Albemarle is also strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. The company is well placed to gain from long-term growth in the battery-grade lithium market.
The company is also benefiting from cost-saving and productivity initiatives. Its cost actions are expected to support its margins in 2022.
Albemarle remains committed to deliver incremental returns to its shareholders. The company has raised its annual dividend for the 28th straight year. Albemarle remains focused on maintaining its dividend payout. The company also remains committed to maintain adequate financial flexibility with ample liquidity.
Other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Nutrien Ltd. (NTR - Free Report) and Cabot Corporation (CBT - Free Report) .
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 23% in a year.
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 161.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 38.8% upward over the last 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 5.8%, on average. NTR has rallied 63% in a year.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 5.2% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 11% over a year.
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Here's Why You Should Buy Albemarle (ALB) Stock Right Now
Shares of Albemarle Corporation (ALB - Free Report) have popped around 27% over the past three months. The company is benefiting from higher lithium prices and volumes, capacity expansion and cost-saving actions.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Let’s delve deeper into the factors that make this Zacks Rank #1 (Strong Buy) stock an attractive choice for investors right now.
An Outperformer
Shares of Albemarle have rallied 49.9% over a year against the 7.7% decline of its industry. It has also outperformed the S&P 500’s 5.3% decline over the same period.
Image Source: Zacks Investment Research
Positive Earnings Surprise History
Albemarle has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 22.5%, on average.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Albemarle for 2022 has increased around 85.8%. The consensus estimate for second-quarter 2022 has also been revised 86.4% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Strong Growth Prospects
The Zacks Consensus Estimate for earnings for 2022 for Albemarle is currently pegged at $11.11, reflecting an expected year-over-year growth of 175%. Earnings are also expected to register a 176.4% growth in the second quarter.
Growth Drivers in Place
Albemarle is benefiting from higher volumes in its lithium business on continued recovery in global economic activities. Healthy customer orders, new capacity and plant productivity improvements are supporting volumes. Higher lithium prices are also supporting its performance. Tight supply conditions and growing demand for electric vehicles are driving lithium prices. The company’s bromine business is also gaining from strong demand and favorable pricing led by tight market conditions. Albemarle is seeing strong demand for flame retardants.
The company recently raised its full-year 2022 guidance to reflect the completion of additional lithium contract renegotiations. It now expects net sales in the range of $5.8-$6.2 billion for 2022, up from the previous outlook of $5.2-$5.6 billion. Albemarle also sees adjusted earnings per share in the range of $12.30-$15, higher than the prior guidance of $9.25-$12.25. Adjusted EBITDA for the year is now forecast to be $2.2-$2.5 billion, up from the prior view of $1.7-$2 billion.
The lithium adjusted EBITDA for the full year 2022 is now projected to rise roughly 300% year over year, up from the earlier outlook. Average realized pricing is now anticipated to be up around 140% year over year resulting from the implementation of index-referenced, variable-price contracts and improved market pricing.
Albemarle is also strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. The company is well placed to gain from long-term growth in the battery-grade lithium market.
The company is also benefiting from cost-saving and productivity initiatives. Its cost actions are expected to support its margins in 2022.
Albemarle remains committed to deliver incremental returns to its shareholders. The company has raised its annual dividend for the 28th straight year. Albemarle remains focused on maintaining its dividend payout. The company also remains committed to maintain adequate financial flexibility with ample liquidity.
Albemarle Corporation Price and Consensus
Albemarle Corporation price-consensus-chart | Albemarle Corporation Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Nutrien Ltd. (NTR - Free Report) and Cabot Corporation (CBT - Free Report) .
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 23% in a year.
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 161.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 38.8% upward over the last 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 5.8%, on average. NTR has rallied 63% in a year.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 5.2% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 11% over a year.