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

In the latest trading session, Albemarle (ALB) closed at $280.94, marking a +1.5% move from the previous day. This change outpaced the S&P 500's 1.03% loss on the day. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.39%.

Heading into today, shares of the specialty chemicals company had lost 0.86% over the past month, lagging the Basic Materials sector's gain of 1.01% and outpacing the S&P 500's loss of 3.51% in that time.

Albemarle will be looking to display strength as it nears its next earnings release, which is expected to be November 2, 2022. In that report, analysts expect Albemarle to post earnings of $6.81 per share. This would mark year-over-year growth of 548.57%. Our most recent consensus estimate is calling for quarterly revenue of $2.12 billion, up 155% from the year-ago period.

ALB's full-year Zacks Consensus Estimates are calling for earnings of $21.28 per share and revenue of $7.45 billion. These results would represent year-over-year changes of +426.73% and +123.98%, respectively.

It is also important to note the recent changes to analyst estimates for Albemarle. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 past month, the Zacks Consensus EPS estimate has moved 0.16% higher. Albemarle currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Albemarle is holding a Forward P/E ratio of 13.01. This valuation marks a premium compared to its industry's average Forward P/E of 8.85.

Investors should also note that ALB has a PEG ratio of 0.41 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALB's industry had an average PEG ratio of 1.34 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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