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Why the Market Dipped But Albemarle (ALB) Gained Today
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Albemarle (ALB - Free Report) closed the most recent trading day at $96.40, moving +1.84% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.31%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq lost 1.09%.
Prior to today's trading, shares of the specialty chemicals company had lost 25.81% over the past month. This has lagged the Basic Materials sector's loss of 6.38% and the S&P 500's gain of 2.73% in that time.
The investment community will be closely monitoring the performance of Albemarle in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.75, reflecting an 89.77% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.41 billion, indicating a 40.35% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.49 per share and a revenue of $5.85 billion, demonstrating changes of -88.81% and -39.2%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Albemarle. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate has shifted 18.76% downward. As of now, Albemarle holds a Zacks Rank of #3 (Hold).
In terms of valuation, Albemarle is currently trading at a Forward P/E ratio of 37.99. This denotes a premium relative to the industry's average Forward P/E of 17.53.
It's also important to note that ALB currently trades at a PEG ratio of 2.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.07 based on yesterday's closing prices.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why the Market Dipped But Albemarle (ALB) Gained Today
Albemarle (ALB - Free Report) closed the most recent trading day at $96.40, moving +1.84% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.31%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq lost 1.09%.
Prior to today's trading, shares of the specialty chemicals company had lost 25.81% over the past month. This has lagged the Basic Materials sector's loss of 6.38% and the S&P 500's gain of 2.73% in that time.
The investment community will be closely monitoring the performance of Albemarle in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.75, reflecting an 89.77% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.41 billion, indicating a 40.35% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.49 per share and a revenue of $5.85 billion, demonstrating changes of -88.81% and -39.2%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Albemarle. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate has shifted 18.76% downward. As of now, Albemarle holds a Zacks Rank of #3 (Hold).
In terms of valuation, Albemarle is currently trading at a Forward P/E ratio of 37.99. This denotes a premium relative to the industry's average Forward P/E of 17.53.
It's also important to note that ALB currently trades at a PEG ratio of 2.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.07 based on yesterday's closing prices.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.