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Albemarle (ALB) Gains As Market Dips: What You Should Know

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In the latest trading session, Albemarle (ALB - Free Report) closed at $205.93, marking a +1.44% move from the previous day. This change outpaced the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.03%.

Coming into today, shares of the specialty chemicals company had lost 16.04% in the past month. In that same time, the Basic Materials sector lost 25.14%, while the S&P 500 lost 6.03%.

Wall Street will be looking for positivity from Albemarle as it approaches its next earnings report date. This is expected to be August 3, 2022. On that day, Albemarle is projected to report earnings of $2.79 per share, which would represent year-over-year growth of 213.48%. Meanwhile, our latest consensus estimate is calling for revenue of $1.28 billion, up 65.39% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.40 per share and revenue of $6.07 billion. These totals would mark changes of +231.68% and +82.31%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Albemarle. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Albemarle currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Albemarle is holding a Forward P/E ratio of 15.15. This represents a premium compared to its industry's average Forward P/E of 9.24.

Investors should also note that ALB has a PEG ratio of 0.59 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Chemical - Diversified industry currently had an average PEG ratio of 0.98 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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