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What Makes Albemarle (ALB) Stock a Solid Choice Right Now
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Shares of Albemarle Corporation (ALB - Free Report) have gained around 9% 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 52.8% over the past six months against the 1.1% rise of its industry. It has also outperformed the S&P 500’s 5.8% 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 24.2%, on average.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Albemarle for 2022 has increased around 67.9%. The consensus estimate for third-quarter 2022 has also been revised 86.2% 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 $21.24, reflecting an expected year-over-year growth of 425.7%. Earnings are also expected to register 517.1% growth in the third quarter of 2022.
Growth Drivers in Place
Albemarle is benefiting from higher volumes in its lithium business on a recovery in global economic activities. Higher customer demand, new capacity and plant productivity improvements are supporting volumes. The La Negra III/IV expansion in Chile is also contributing to higher volumes. Strong 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, in its second-quarter call, raised its net sales outlook for 2022 factoring in continued strength in pricing in its Lithium and Bromine businesses. The company envisions net sales for 2022 to be in the band of $7.1-$7.5 billion, up from $5.8-$6.2 billion it expected earlier.
Adjusted EBITDA for the year is now forecast to be $3.2-$3.5 billion, up from the prior view of $2.2-$2.5 billion. Albemarle also sees adjusted earnings per share for 2022 in the band of $19.25-$22.25, up from $12.30-$15.00 it expected earlier.
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 also 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 Daqo New Energy Corp. (DQ - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and The Chemours Company (CC - Free Report) .
Daqo New Energy, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 177.5% for the current year. The Zacks Consensus Estimate for DQ's earnings for the current fiscal has been revised 20.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Daqo New Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 10.8%. DQ has gained around 11% over a year.
Sociedad has a projected earnings growth rate of 520.5% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 34% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has rallied roughly 101% in a year. The company carries a Zacks Rank #2 (Buy).
Chemours has a projected earnings growth rate of 40% for the current year. The Zacks Consensus Estimate for CC's current-year earnings has been revised 7.3% upward in the past 60 days.
Chemours’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 28.3%, on average. CC has gained around 6% in a year and currently carries a Zacks Rank #2.
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What Makes Albemarle (ALB) Stock a Solid Choice Right Now
Shares of Albemarle Corporation (ALB - Free Report) have gained around 9% 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 52.8% over the past six months against the 1.1% rise of its industry. It has also outperformed the S&P 500’s 5.8% 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 24.2%, on average.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Albemarle for 2022 has increased around 67.9%. The consensus estimate for third-quarter 2022 has also been revised 86.2% 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 $21.24, reflecting an expected year-over-year growth of 425.7%. Earnings are also expected to register 517.1% growth in the third quarter of 2022.
Growth Drivers in Place
Albemarle is benefiting from higher volumes in its lithium business on a recovery in global economic activities. Higher customer demand, new capacity and plant productivity improvements are supporting volumes. The La Negra III/IV expansion in Chile is also contributing to higher volumes. Strong 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, in its second-quarter call, raised its net sales outlook for 2022 factoring in continued strength in pricing in its Lithium and Bromine businesses. The company envisions net sales for 2022 to be in the band of $7.1-$7.5 billion, up from $5.8-$6.2 billion it expected earlier.
Adjusted EBITDA for the year is now forecast to be $3.2-$3.5 billion, up from the prior view of $2.2-$2.5 billion. Albemarle also sees adjusted earnings per share for 2022 in the band of $19.25-$22.25, up from $12.30-$15.00 it expected earlier.
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 also 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 Daqo New Energy Corp. (DQ - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and The Chemours Company (CC - Free Report) .
Daqo New Energy, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 177.5% for the current year. The Zacks Consensus Estimate for DQ's earnings for the current fiscal has been revised 20.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Daqo New Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 10.8%. DQ has gained around 11% over a year.
Sociedad has a projected earnings growth rate of 520.5% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 34% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has rallied roughly 101% in a year. The company carries a Zacks Rank #2 (Buy).
Chemours has a projected earnings growth rate of 40% for the current year. The Zacks Consensus Estimate for CC's current-year earnings has been revised 7.3% upward in the past 60 days.
Chemours’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 28.3%, on average. CC has gained around 6% in a year and currently carries a Zacks Rank #2.