Albemarle (ALB) closed at $179.53 in the latest trading session, marking a +1.3% move from the prior day. This change lagged the S&P 500's 2.91% gain on the day. Meanwhile, the Dow experienced a rise of 2.49%, and the technology-dominated Nasdaq saw an increase of 3.83%.
The stock of specialty chemicals company has fallen by 0.54% in the past month, leading the Basic Materials sector's loss of 14.98% and the S&P 500's loss of 7.64%.
Investors will be eagerly watching for the performance of Albemarle in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.78, indicating a 533.33% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.28 billion, indicating a 18.91% growth compared to the corresponding quarter of the prior year.
ALB's full-year Zacks Consensus Estimates are calling for earnings of $8.15 per share and revenue of $5.58 billion. These results would represent year-over-year changes of +1131.65% and +8.48%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Albemarle. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.51% rise in the Zacks Consensus EPS estimate. Albemarle is currently a Zacks Rank #3 (Hold).
In the context of valuation, Albemarle is at present trading with a Forward P/E ratio of 21.74. This represents a premium compared to its industry average Forward P/E of 18.66.
Also, we should mention that ALB has a PEG ratio of 1.36. 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. By the end of yesterday's trading, the Chemical - Diversified industry had an average PEG ratio of 1.59.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 14% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Albemarle Corporation (ALB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).