Back to top

Albemarle (ALB) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Albemarle (ALB - Free Report) closed the most recent trading day at $80.86, moving -0.19% from the previous trading session. This change lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.21%, and the Nasdaq, a tech-heavy index, added 0.13%.

Heading into today, shares of the specialty chemicals company had gained 4.84% over the past month, outpacing the Basic Materials sector's gain of 2.9% and lagging the S&P 500's gain of 5.36% in that time.

ALB will be looking to display strength as it nears its next earnings release, which is expected to be February 20, 2019. The company is expected to report EPS of $1.46, up 8.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $889.93 million, up 3.75% from the year-ago period.

Any recent changes to analyst estimates for ALB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate has moved 0.04% lower. ALB currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ALB is holding a Forward P/E ratio of 13.25. For comparison, its industry has an average Forward P/E of 12.39, which means ALB is trading at a premium to the group.

We can also see that ALB currently has a PEG ratio of 0.82. 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. ALB's industry had an average PEG ratio of 0.96 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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

In-Depth Zacks Research for the Tickers Above

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

Albemarle Corporation (ALB) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in