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Here's Why Albemarle (ALB) Fell More Than Broader Market
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In the latest trading session, Albemarle (ALB - Free Report) closed at $93.81, marking a -1.34% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.78%. At the same time, the Dow lost 1.29%, and the tech-heavy Nasdaq lost 0.7%.
Heading into today, shares of the specialty chemicals company had lost 4.48% over the past month, lagging the Basic Materials sector's gain of 1.42% and the S&P 500's gain of 2.14% in that time.
The investment community will be paying close attention to the earnings performance of Albemarle in its upcoming release. The company is slated to reveal its earnings on July 31, 2024. In that report, analysts expect Albemarle to post earnings of $0.71 per share. This would mark a year-over-year decline of 90.31%. Meanwhile, our latest consensus estimate is calling for revenue of $1.41 billion, down 40.48% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.57 per share and a revenue of $5.79 billion, indicating changes of -92.94% and -39.8%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Albemarle. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 24.61% downward. Currently, Albemarle is carrying a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Albemarle is at present trading with a Forward P/E ratio of 60.42. For comparison, its industry has an average Forward P/E of 18.37, which means Albemarle is trading at a premium to the group.
We can additionally observe that ALB currently boasts a PEG ratio of 3.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Chemical - Diversified industry was having an average PEG ratio of 1.1.
The Chemical - Diversified industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 239, placing it within the bottom 6% of over 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 Zacks.com.
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Here's Why Albemarle (ALB) Fell More Than Broader Market
In the latest trading session, Albemarle (ALB - Free Report) closed at $93.81, marking a -1.34% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.78%. At the same time, the Dow lost 1.29%, and the tech-heavy Nasdaq lost 0.7%.
Heading into today, shares of the specialty chemicals company had lost 4.48% over the past month, lagging the Basic Materials sector's gain of 1.42% and the S&P 500's gain of 2.14% in that time.
The investment community will be paying close attention to the earnings performance of Albemarle in its upcoming release. The company is slated to reveal its earnings on July 31, 2024. In that report, analysts expect Albemarle to post earnings of $0.71 per share. This would mark a year-over-year decline of 90.31%. Meanwhile, our latest consensus estimate is calling for revenue of $1.41 billion, down 40.48% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.57 per share and a revenue of $5.79 billion, indicating changes of -92.94% and -39.8%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Albemarle. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 24.61% downward. Currently, Albemarle is carrying a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Albemarle is at present trading with a Forward P/E ratio of 60.42. For comparison, its industry has an average Forward P/E of 18.37, which means Albemarle is trading at a premium to the group.
We can additionally observe that ALB currently boasts a PEG ratio of 3.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Chemical - Diversified industry was having an average PEG ratio of 1.1.
The Chemical - Diversified industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 239, placing it within the bottom 6% of over 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 Zacks.com.