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

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In the latest trading session, Albemarle (ALB - Free Report) closed at $241.67, marking a -0.73% move from the previous day. This change lagged the S&P 500's 0.85% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.

Coming into today, shares of the specialty chemicals company had gained 7.34% in the past month. In that same time, the Basic Materials sector gained 3.91%, while the S&P 500 gained 3.18%.

Wall Street will be looking for positivity from Albemarle as it approaches its next earnings report date. This is expected to be August 2, 2023. On that day, Albemarle is projected to report earnings of $4.29 per share, which would represent year-over-year growth of 24.35%. Meanwhile, our latest consensus estimate is calling for revenue of $2.56 billion, up 73.3% from the prior-year quarter.

ALB's full-year Zacks Consensus Estimates are calling for earnings of $23.12 per share and revenue of $10.35 billion. These results would represent year-over-year changes of +5.28% and +41.38%, respectively.

Investors should also note any recent changes to analyst estimates for Albemarle. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.51% higher within the past month. Albemarle is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Albemarle is currently trading at a Forward P/E ratio of 10.53. Its industry sports an average Forward P/E of 14.96, so we one might conclude that Albemarle is trading at a discount comparatively.

It is also worth noting that ALB currently has a PEG ratio of 0.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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