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Albemarle (ALB) Stock Dips While Market Gains: Key Facts

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The latest trading session saw Albemarle (ALB - Free Report) ending at $94.71, denoting a -1.4% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.42%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.38%.

The specialty chemicals company's stock has climbed by 6.43% in the past month, exceeding the Basic Materials sector's gain of 5.24% and the S&P 500's gain of 2.06%.

Investors will be eagerly watching for the performance of Albemarle in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.03, showcasing a 101.09% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.39 billion, indicating a 39.92% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.70 per share and revenue of $5.61 billion. These totals would mark changes of -96.85% and -41.62%, respectively, from last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Albemarle is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Albemarle currently has a Forward P/E ratio of 138.2. This expresses a premium compared to the average Forward P/E of 19.1 of its industry.

It's also important to note that ALB currently trades at a PEG ratio of 8.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Chemical - Diversified was holding an average PEG ratio of 1.26 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 211, finds itself in the bottom 17% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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