We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Albemarle Scales New 52-Week High: What's Driving the Stock?
Read MoreHide Full Article
Shares of chemicals maker Albemarle (ALB - Free Report) scaled a fresh 52-week high of $105.51 yesterday, before pulling back to close the day at $105.22.
Albemarle has a market cap of roughly $11.7 billion and average volume of shares traded in the last three months is around 972.9K. The company has an expected long-term EPS growth of around 10.3%.
Albemarle’s shares have gained 68.5% over a year, outperforming the Zacks categorized Chemicals-Diversified industry’s gain of 17.1% over the same period, partly reflecting its forecast-topping earnings performance over the trailing four quarters.
Driving Factors
Albemarle's adjusted earnings of 78 cents per share for fourth-quarter 2016 topped the Zacks Consensus Estimate of 75 cents. Revenues of $696.7 million also beat the Zacks Consensus Estimate of $599.8 million. The company, in its fourth-quarter call, noted that its performance in 2016 and strategic initiatives have positioned it for strong growth in 2017.
Albemarle remains focused on strengthening its lithium business. The company recently said that its Talison joint venture in Australia has approved the expansion of lithium concentrate production at its Greenbushes mine. The expansion will more than double the lithium carbonate equivalent capacity at Greenbushes from 80,000 metric tons per year to more than 160,000 metric tons.
Albemarle, earlier this year, also closed the acquisition of the lithium assets of Jiangxi Jiangli New Materials Science and Technology Co. Ltd. for roughly $145 million. The deal includes manufacturing assets and supporting business functions located in Jiangxi and Sichuan, China focused on making battery-grade lithium hydroxide and lithium carbonate. The acquisition will allow Albemarle to supply premium lithium salts to an expanded global customer base and accelerate the company’s ability to meet its goal of capturing 50% of the growth in the lithium industry.
Albemarle, in Sep 2016, also entered into a deal with Bolland Minera S.A. that provided the former exclusive exploration and acquisition rights to a lithium resource in Antofalla (within the Catamarca Province of Argentina), which could prove to be the biggest lithium resource in Argentina.
Moreover, Albemarle, in Jan 2017, agreed to amend its lithium production rights agreement with the Chilean Economic Development Agency to extend the term of the deal and increase the company's authorized lithium quota at its facility in the Salar de Atacama, Chile.
The amended agreement offers Albemarle with adequate lithium to make more than 80,000 metric tons of technical and battery grade lithium salts annually over the next 27 years at the company’s expanding battery grade manufacturing plants in La Negra, Antofagasta. The agreement will also allow Albemarle to further support growth of its long-term customers in the energy storage market and other high growth applications.
Albemarle is also selling non-core businesses and assets to boost growth opportunities and focus on its key businesses. As part of this move, the company has sold its Chemetall Surface Treatment unit to German chemical giant BASF (BASFY - Free Report) for around $3.2 billion. The sale is a part of Albemarle's sustained commitment to boost shareholder value by investing in the growth of its high priority businesses.
Last year, the company also wrapped up the sale of its mineral flame retardants and specialty chemicals businesses to Huber Engineered Materials. Albemarle also completed the divestiture of the tribotecc metal sulfides business to Treibacher Industrie AG. The divestment advances the company’s strategic plan of focusing on its core bromine, lithium, catalysts and surface treatment businesses.
Albemarle currently carries a Zacks Rank #3 (Hold).
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Albemarle Scales New 52-Week High: What's Driving the Stock?
Shares of chemicals maker Albemarle (ALB - Free Report) scaled a fresh 52-week high of $105.51 yesterday, before pulling back to close the day at $105.22.
Albemarle has a market cap of roughly $11.7 billion and average volume of shares traded in the last three months is around 972.9K. The company has an expected long-term EPS growth of around 10.3%.
Albemarle’s shares have gained 68.5% over a year, outperforming the Zacks categorized Chemicals-Diversified industry’s gain of 17.1% over the same period, partly reflecting its forecast-topping earnings performance over the trailing four quarters.
Driving Factors
Albemarle's adjusted earnings of 78 cents per share for fourth-quarter 2016 topped the Zacks Consensus Estimate of 75 cents. Revenues of $696.7 million also beat the Zacks Consensus Estimate of $599.8 million. The company, in its fourth-quarter call, noted that its performance in 2016 and strategic initiatives have positioned it for strong growth in 2017.
Albemarle remains focused on strengthening its lithium business. The company recently said that its Talison joint venture in Australia has approved the expansion of lithium concentrate production at its Greenbushes mine. The expansion will more than double the lithium carbonate equivalent capacity at Greenbushes from 80,000 metric tons per year to more than 160,000 metric tons.
Albemarle, earlier this year, also closed the acquisition of the lithium assets of Jiangxi Jiangli New Materials Science and Technology Co. Ltd. for roughly $145 million. The deal includes manufacturing assets and supporting business functions located in Jiangxi and Sichuan, China focused on making battery-grade lithium hydroxide and lithium carbonate. The acquisition will allow Albemarle to supply premium lithium salts to an expanded global customer base and accelerate the company’s ability to meet its goal of capturing 50% of the growth in the lithium industry.
Albemarle, in Sep 2016, also entered into a deal with Bolland Minera S.A. that provided the former exclusive exploration and acquisition rights to a lithium resource in Antofalla (within the Catamarca Province of Argentina), which could prove to be the biggest lithium resource in Argentina.
Moreover, Albemarle, in Jan 2017, agreed to amend its lithium production rights agreement with the Chilean Economic Development Agency to extend the term of the deal and increase the company's authorized lithium quota at its facility in the Salar de Atacama, Chile.
The amended agreement offers Albemarle with adequate lithium to make more than 80,000 metric tons of technical and battery grade lithium salts annually over the next 27 years at the company’s expanding battery grade manufacturing plants in La Negra, Antofagasta. The agreement will also allow Albemarle to further support growth of its long-term customers in the energy storage market and other high growth applications.
Albemarle is also selling non-core businesses and assets to boost growth opportunities and focus on its key businesses. As part of this move, the company has sold its Chemetall Surface Treatment unit to German chemical giant BASF (BASFY - Free Report) for around $3.2 billion. The sale is a part of Albemarle's sustained commitment to boost shareholder value by investing in the growth of its high priority businesses.
Last year, the company also wrapped up the sale of its mineral flame retardants and specialty chemicals businesses to Huber Engineered Materials. Albemarle also completed the divestiture of the tribotecc metal sulfides business to Treibacher Industrie AG. The divestment advances the company’s strategic plan of focusing on its core bromine, lithium, catalysts and surface treatment businesses.
Albemarle currently carries a Zacks Rank #3 (Hold).
Albemarle Corporation Price and Consensus
Albemarle Corporation Price and Consensus | Albemarle Corporation Quote
Stocks to Consider
Better-ranked companies in the chemical space include Univar Inc. and Kronos Worldwide, Inc. (KRO - Free Report) , both holding a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Univar has an expected long-term growth of 9.4%.
Kronos has an expected long-term growth of 5%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>