Albemarle (ALB) closed the most recent trading day at $213.62, moving -1.21% from the previous trading session. This change lagged the S&P 500's 0.95% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.12%.
Prior to today's trading, shares of the specialty chemicals company had lost 8.96% over the past month. This has was narrower than the Basic Materials sector's loss of 11.11% and lagged the S&P 500's loss of 3.49% in that time.
Wall Street will be looking for positivity from Albemarle as it approaches its next earnings report date. On that day, Albemarle is projected to report earnings of $2.79 per share, which would represent year-over-year growth of 213.48%. Our most recent consensus estimate is calling for quarterly revenue of $1.28 billion, up 65.39% from the year-ago period.
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 should also note any recent changes to analyst estimates for Albemarle. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.5% higher. Albemarle is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Albemarle has a Forward P/E ratio of 16.14 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.26.
Also, we should mention that ALB has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALB's industry had an average PEG ratio of 0.97 as of yesterday's close.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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