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Albemarle (ALB) Outperforms Broader Market: What You Need to Know

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Albemarle (ALB - Free Report) closed the latest trading day at $101.92, indicating a +1.66% change from the previous session's end. This change outpaced the S&P 500's 0.71% gain on the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.6%.

The specialty chemicals company's shares have seen an increase of 27.52% over the last month, surpassing the Basic Materials sector's gain of 5.75% and the S&P 500's gain of 6.41%.

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 November 6, 2024. The company's upcoming EPS is projected at -$0.10, signifying a 103.65% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.39 billion, showing a 39.81% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.46 per share and a revenue of $5.62 billion, signifying shifts of -97.93% and -41.6%, respectively, from the last year.

Any recent changes to analyst estimates for Albemarle should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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 last 30 days, the Zacks Consensus EPS estimate has moved 33.65% lower. Albemarle is currently sporting a Zacks Rank of #4 (Sell).

In the context of valuation, Albemarle is at present trading with a Forward P/E ratio of 217.43. This denotes a premium relative to the industry's average Forward P/E of 18.2.

It is also worth noting that ALB currently has a PEG ratio of 13.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ALB's industry had an average PEG ratio of 1.19 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 27% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.


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