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Here's Why Albemarle (ALB) Fell More Than Broader Market

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The most recent trading session ended with Albemarle (ALB - Free Report) standing at $95.52, reflecting a -1.17% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.33% loss on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.56%.

Coming into today, shares of the specialty chemicals company had gained 2.47% in the past month. In that same time, the Basic Materials sector lost 4.77%, while the S&P 500 gained 1.83%.

Analysts and investors alike will be keeping a close eye on the performance of Albemarle in its upcoming earnings disclosure. The company's earnings report is set to go public on November 6, 2024. The company's earnings per share (EPS) are projected to be -$0.31, reflecting a 111.31% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.39 billion, reflecting a 39.81% fall from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.04 per share and a revenue of $5.62 billion, signifying shifts of -100.18% and -41.55%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Albemarle. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been a 108.37% fall in the Zacks Consensus EPS estimate. Albemarle is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, Albemarle is currently being traded at a Forward P/E ratio of 264.28. This indicates a premium in contrast to its industry's Forward P/E of 18.2.

It's also important to note that ALB currently trades at a PEG ratio of 16.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Chemical - Diversified industry was having an average PEG ratio of 1.44.

The Chemical - Diversified industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 209, placing it within the bottom 18% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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