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Albemarle (ALB) Gains As Market Dips: What You Should Know

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Albemarle (ALB) closed the most recent trading day at $196.66, moving +0.34% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the specialty chemicals company had lost 8.87% in the past month. In that same time, the Basic Materials sector lost 17.94%, while the S&P 500 gained 1.51%.

Investors will be hoping for strength from Albemarle as it approaches its next earnings release, which is expected to be August 3, 2022. The company is expected to report EPS of $2.79, up 213.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.28 billion, up 65.39% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.40 per share and revenue of $6.07 billion. These totals would mark changes of +231.68% and +82.31%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Albemarle. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Albemarle is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Albemarle has a Forward P/E ratio of 14.63 right now. For comparison, its industry has an average Forward P/E of 9.02, which means Albemarle is trading at a premium to the group.

Investors should also note that ALB has a PEG ratio of 0.57 right now. 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. The Chemical - Diversified was holding an average PEG ratio of 0.96 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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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