In the latest close session, Albemarle (ALB) was down 2.63% at $163.93. This change lagged the S&P 500's 0.57% loss on the day. Elsewhere, the Dow saw a downswing of 1.61%, while the tech-heavy Nasdaq depreciated by 0.26%.
The specialty chemicals company's shares have seen a decrease of 0.18% over the last month, not keeping up with the Basic Materials sector's gain of 3.46% and the S&P 500's loss of 0.15%.
The investment community will be closely monitoring the performance of Albemarle in its forthcoming earnings report. The company's upcoming EPS is projected at $0.73, signifying a 505.56% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.28 billion, up 18.91% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.87 per share and a revenue of $5.58 billion, demonstrating changes of +1096.2% and +8.48%, respectively, from the preceding year.
Investors might also notice 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 70.6% higher. Currently, Albemarle is carrying a Zacks Rank of #1 (Strong Buy).
Investors should also note Albemarle's current valuation metrics, including its Forward P/E ratio of 21.38. This signifies a premium in comparison to the average Forward P/E of 18.21 for its industry.
We can also see that ALB currently has a PEG ratio of 1.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Chemical - Diversified industry had an average PEG ratio of 1.54.
The Chemical - Diversified industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 196, this industry ranks in the bottom 20% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Albemarle Corporation (ALB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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