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Albemarle (ALB) Stock Sinks As Market Gains: Here's Why
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Albemarle (ALB - Free Report) ended the recent trading session at $110.91, demonstrating a -3.6% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow experienced a drop of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.4%.
Heading into today, shares of the specialty chemicals company had lost 14.26% over the past month, lagging the Basic Materials sector's loss of 0.24% and the S&P 500's loss of 1.29%.
Market participants will be closely following the financial results of Albemarle in its upcoming release. The company's earnings per share (EPS) are projected to be $2.55, reflecting a 1442.11% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.52 billion, showing a 16.07% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.39 per share and a revenue of $6.1 billion, representing changes of +1541.77% and +18.69%, respectively, from the prior year.
Any recent changes to analyst estimates for Albemarle should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 4.37% fall in the Zacks Consensus EPS estimate. Currently, Albemarle is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Albemarle is currently being traded at a Forward P/E ratio of 10.1. This valuation marks a discount compared to its industry average Forward P/E of 16.69.
We can additionally observe that ALB currently boasts a PEG ratio of 0.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Chemical - Diversified was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Chemical - Diversified industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 42% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Albemarle (ALB) Stock Sinks As Market Gains: Here's Why
Albemarle (ALB - Free Report) ended the recent trading session at $110.91, demonstrating a -3.6% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow experienced a drop of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.4%.
Heading into today, shares of the specialty chemicals company had lost 14.26% over the past month, lagging the Basic Materials sector's loss of 0.24% and the S&P 500's loss of 1.29%.
Market participants will be closely following the financial results of Albemarle in its upcoming release. The company's earnings per share (EPS) are projected to be $2.55, reflecting a 1442.11% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.52 billion, showing a 16.07% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.39 per share and a revenue of $6.1 billion, representing changes of +1541.77% and +18.69%, respectively, from the prior year.
Any recent changes to analyst estimates for Albemarle should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 4.37% fall in the Zacks Consensus EPS estimate. Currently, Albemarle is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Albemarle is currently being traded at a Forward P/E ratio of 10.1. This valuation marks a discount compared to its industry average Forward P/E of 16.69.
We can additionally observe that ALB currently boasts a PEG ratio of 0.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Chemical - Diversified was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Chemical - Diversified industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 42% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.