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Albemarle (ALB) Stock Moves -0.66%: What You Should Know

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The latest trading session saw Albemarle (ALB - Free Report) ending at $90.88, denoting a -0.66% adjustment from its last day's close. This move was narrower than the S&P 500's daily loss of 2.32%. Meanwhile, the Dow lost 1.25%, and the Nasdaq, a tech-heavy index, lost 3.64%.

Heading into today, shares of the specialty chemicals company had lost 1.39% over the past month, outpacing the Basic Materials sector's loss of 1.83% and lagging the S&P 500's gain of 1.79% in that time.

Market participants will be closely following the financial results of Albemarle in its upcoming release. The company plans to announce its earnings on July 31, 2024. It is anticipated that the company will report an EPS of $0.58, marking a 92.09% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.4 billion, down 40.89% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.57 per share and revenue of $5.72 billion, indicating changes of -92.94% and -40.57%, respectively, compared to the previous year.

Investors might also notice 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 24.61% lower. Currently, Albemarle is carrying a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Albemarle is presently being traded at a Forward P/E ratio of 58.13. This represents a premium compared to its industry's average Forward P/E of 18.2.

Investors should also note that ALB has a PEG ratio of 3.63 right now. 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. With its current Zacks Industry Rank of 234, this industry ranks in the bottom 8% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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