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Albemarle (ALB) Stock Dips While Market Gains: Key Facts

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Albemarle (ALB - Free Report) closed the most recent trading day at $79, moving -1.1% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.36%. On the other hand, the Dow registered a loss of 0.28%, and the technology-centric Nasdaq increased by 0.51%.

The specialty chemicals company's stock has dropped by 8.58% in the past month, falling short of the Basic Materials sector's gain of 7.62% and the S&P 500's gain of 2.11%.

Investors will be eagerly watching for the performance of Albemarle in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 12, 2025. On that day, Albemarle is projected to report earnings of -$0.41 per share, which would represent a year-over-year decline of 122.16%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.38 billion, indicating a 41.58% decrease compared to the same quarter of the previous 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 22.08% decrease. Albemarle is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Albemarle is currently exchanging hands at a Forward P/E ratio of 55.41. This valuation marks a premium compared to its industry's average Forward P/E of 14.74.

It's also important to note that ALB currently trades at a PEG ratio of 3.46. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Chemical - Diversified industry currently had an average PEG ratio of 1.08 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 233, this industry ranks in the bottom 8% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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