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Why Albemarle (ALB) Outpaced the Stock Market Today

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Albemarle (ALB - Free Report) closed the most recent trading day at $90.46, moving +1.97% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.

Coming into today, shares of the specialty chemicals company had lost 0.26% in the past month. In that same time, the Basic Materials sector gained 0.94%, while the S&P 500 gained 1.65%.

Analysts and investors alike will be keeping a close eye on the performance of Albemarle in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.03, reflecting a 101.09% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.39 billion, down 39.92% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.70 per share and a revenue of $5.61 billion, representing changes of -96.85% and -41.62%, respectively, from the prior year.

Any recent changes to analyst estimates for Albemarle should also be noted by investors. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 remained steady. As of now, Albemarle holds a Zacks Rank of #3 (Hold).

In terms of valuation, Albemarle is presently being traded at a Forward P/E ratio of 127.64. For comparison, its industry has an average Forward P/E of 18.49, which means Albemarle is trading at a premium to the group.

It is also worth noting that ALB currently has a PEG ratio of 7.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Chemical - Diversified industry held an average PEG ratio of 1.16.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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