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Albemarle (ALB) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Albemarle (ALB - Free Report) closed at $88.76, marking a -1.16% move from the previous day. This change lagged the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 0.5%.

The the stock of specialty chemicals company has risen by 0.73% in the past month, lagging the Basic Materials sector's gain of 1.82% and the S&P 500's gain of 2.52%.

Market participants will be closely following the financial results of Albemarle in its upcoming release. The company plans to announce its earnings on February 12, 2025. On that day, Albemarle is projected to report earnings of -$0.37 per share, which would represent a year-over-year decline of 120%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.4 billion, down 40.69% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for Albemarle. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.28% lower within the past month. Albemarle presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Albemarle is presently being traded at a Forward P/E ratio of 50.71. For comparison, its industry has an average Forward P/E of 14.92, which means Albemarle is trading at a premium to the group.

Meanwhile, ALB's PEG ratio is currently 3.17. 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. The Chemical - Diversified industry currently had an average PEG ratio of 1.32 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 232, this industry ranks in the bottom 8% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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