Back to top

Image: Bigstock

Albemarle (ALB) Laps the Stock Market: Here's Why

Read MoreHide Full Article

The most recent trading session ended with Albemarle (ALB - Free Report) standing at $116.78, reflecting a +1.78% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 1.25%. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 1.3%.

The specialty chemicals company's shares have seen a decrease of 18.15% over the last month, not keeping up with the Basic Materials sector's loss of 7.18% and the S&P 500's gain of 1.58%.

Analysts and investors alike will be keeping a close eye on the performance of Albemarle in its upcoming earnings disclosure. The company's earnings report is set to go public on February 14, 2024. The company is expected to report EPS of $1.09, down 87.35% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.3 billion, indicating a 12.17% decrease compared to the same quarter of the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Albemarle. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 20.09% fall in the Zacks Consensus EPS estimate. As of now, Albemarle holds a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Albemarle is currently being traded at a Forward P/E ratio of 11.11. This indicates a discount in contrast to its industry's Forward P/E of 16.55.

It is also worth noting that ALB currently has a PEG ratio of 0.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Chemical - Diversified industry was having an average PEG ratio of 1.68.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 224, finds itself in the bottom 12% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

To follow ALB in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Albemarle Corporation (ALB) - free report >>

Published in