Albemarle (ALB) Outpaces Stock Market Gains: What You Should Know

Albemarle (ALB) closed at $181.39 in the latest trading session, marking a +2.45% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 0.77%.

The stock of specialty chemicals company has fallen by 5.23% in the past month, leading the Basic Materials sector's loss of 14.52% and undershooting the S&P 500's loss of 4.71%.

Market participants will be closely following the financial results of Albemarle in its upcoming release. The company's earnings per share (EPS) are projected to be $0.78, reflecting a 533.33% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.28 billion, showing a 18.91% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.15 per share and a revenue of $5.58 billion, signifying shifts of +1131.65% and +8.48%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Albemarle. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 21.51% higher. Currently, Albemarle is carrying a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Albemarle is presently being traded at a Forward P/E ratio of 21.73. For comparison, its industry has an average Forward P/E of 18.27, which means Albemarle is trading at a premium to the group.

It's also important to note that ALB currently trades at a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Chemical - Diversified was holding an average PEG ratio of 1.51 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 200, placing it within the bottom 19% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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 Up

Want 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).

Zacks Investment Research