shares are trading higher in Monday's after-hours session after the company raised its full-year 2022 guidance. Albemarle said it revised its guidance higher primarily due to the completion of additional lithium contract renegotiations following the company's first-quarter earnings results.
What's happening with Albemarle's stock price?
The stock price of Albemarle, a chemicals company that is also one of the largest producers of lithium, a key raw material for electric vehicle batteries, has declined by almost 17% over the last week (five trading days) and also remains down by about 12% over the past month.
Why did Albemarle’s shares rally at the end of year?
The end-of-year rally was basically driven by the "green" focus of the incoming administration, which suggests that electric vehicle adoption will see further government support. That would boost the long-term prospects of Albemarle's lithium business.
Is Albemarle's (Alb) growth rate of net income growth good or bad?
We then compared Albemarle's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 7.8% in the same period, which is a bit concerning.
Will Lithium prices continue to rise for Albemarle stock?
Albemarle stock fell, hard, after the lithium miner reported fourth-quarter numbers late Wednesday. Results were solid, but guidance for 2022 created confusion for investors. Wall Street, however, sees a catalyst for the stock: Lithium prices are still rising.
Why is Albemarle stock going up?
Higher lithium prices due to tight market conditions are also supporting its performance. Its bromine business is also gaining from higher demand, a rebound in certain end markets, higher pricing and cost-saving actions. Albemarle is seeing strong demand for flame retardants.
Is Albemarle a good stock to buy?
Albemarle currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
Is Albemarle overvalued?
Summary. ALB's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth.
Should I sell my Albemarle stock?
17 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Albemarle in the last year. There are currently 2 sell ratings, 3 hold ratings and 12 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "buy" Albemarle stock.
What is the best lithium stock?
The Best Lithium Stocks of June 2022Albemarle (ALB) Albemarle is a specialty chemicals company and a leading producer of lithium, bromine and refining catalysts. ... Sociedad Química y Minera de Chile (SQM) ... Lithium Americas Corporation (LAC) ... Piedmont Lithium Limited (PLL) ... Livent Corporation (LTHM) ... Ganfeng Lithium (GNENF)
Is Albemarle a buy Zacks?
See rankings and related performance below. The VGM Score are a complementary set of indicators to use alongside the Zacks Rank....Momentum Scorecard. More Info.Zacks RankDefinitionAnnualized Return1Strong Buy25.08%2Buy18.56%3Hold10.15%4Sell5.79%2 more rows
Is Albemarle NC growing?
Over the past four years, Albemarle has experienced unprecedented retail growth and that is continuing. The City is currently developing a new business center to attract large and small business and industry; construction will start later in 2021.
Is Panasonic stock good?
Panasonic Holdings (ADR) currently has a 3.7% dividend yield. Year to date through July 8, 2021, the S&P 500 Consumer Discretionary Index, which represented 12.5% of the S&P 500 Index, was up 12.3% in price,compared with the 15.0% rise for the S&P 500.
Will ALB go up?
Is ALB stock going to rise? The current trend is moderately bullish and ALB is experiencing slight selling pressure.
Is Albemarle a dividend stock?
The annual dividend for Albemarle (NYSE:ALB) is $1.58. Learn more on ALB's annual dividend history.
What does the company Albemarle do?
With a history that extends back to 1887, today's Albemarle is a leading global producer of Lithium, Bromine and Catalyst solutions. We think beyond business-as-usual to power the potential of companies in many of the world's largest and most critical industries, such as energy, electronics, and transportation.
Why is Albemarle stock dropping?
With a market cap of $6.54 billion, shares of the lithium mining giant have fallen by 33.1% over the past few six months and 55% from its 2017 high. This drop isn't due to investors having a problem with Albemarle as a company but rather was caused by falling lithium prices.
The company reported earnings early in the month and the stock just kept rising after that
Reuben Gregg Brewer believes dividends are a window into a company's soul. He tries to invest in good souls.
What happened
Shares of lithium producer Albemarle ( NYSE:ALB) increased by an almost unbelievable 45% in November according to data from S&P Global Market Intelligence. Including that massive gain, the stock gain over the first 11 months of 2020 was an impressive 86%.
So what
The stock's November rally started roughly at the same time the company reported earnings early in the month. It beat analysts' earnings expectations for the quarter and provided full-year 2020 guidance that was also above consensus estimates.
Now what
The huge gain in November has priced in a lot of good news at Albemarle that just doesn't look like it's in the cards over the next few months or quarters. Using the top end of management's 2020 guidance range, Albemarle's P/E ratio is currently 32.
What happened to Albemarle stock in 2020?
As 2020 began, Albemarle's stock rose pretty sharply. And then the coronavirus pandemic hit, leading the shares to drop along with the broader market. The stock then proceeded to recover, crawling back to its pre-pandemic highs. Then, around the time of the U.S. presidential election, Albemarle's shares took off, rocketing higher to close out the year with a massive gain. These ups and downs are important because they speak to the investor sentiment around a stock that has a story.
Is Albemarle a one trick pony?
To be fair, Albemarle isn't a one-trick pony. It is building its lithium business off of its relatively slow and boring businesses in catalysts and bromine. So there's more to understand about the company before jumping aboard.
How much did Albemarle stock drop in 2018?
Albemarle’s stock declined from about $128 at the end of 2017 to $77 in 2018, as the euphoria surrounding lithium stocks as a hot investment trend over 2017 died down with lithium prices also trending lower. However, the stock has seen gains and trades at about $95 presently. While Albemarle’s Revenues have grown steadily from around $3.1 billion in 2017 to about $3.6 billion in 2019, driven by higher sales of Lithium (up 33% over two years) and Bromine specialties (up 17%), Net Income Margins rose from around 3% in 2017 to about 17% in 2019, with Net Income growing from around $100 million to about $604 million. The numbers in 2017 were depressed by some income tax charges relating partly to the one-time transition tax on earnings of certain foreign subsidiaries under the Tax Cuts and Jobs Act. For perspective, Albemarle’s Pre-tax Margins increased from around 14.5% in 2017 to 15.5% in 2019. Albemarle’s P/E multiple has risen from about 12x in 2018 to about 19x presently. See our analysis on What Drove Albemarle’s Stock Price Over The Last 3 Years? for an overview of what has driven Albemarle Stock.
What is Albermarle stock?
Albemarle stock (NYSE: ALB), a chemicals company that is also one of the largest lithium producers, has seen its stock rise by about 6% year-to-date to about $160 per share and by about 2.5x over the last 12 months. The gains are driven largely by President Biden’s ambitious plans for clean energy infrastructure and major commitments to electrification by mainstream automakers. Investors have also valued Albermarle more richly relative to earnings, with the stock trading at over 45x trailing earnings currently, compared to a multiple of just about 15x in 2019 and around 12x in 2018. So does the stock justify this expanding multiple?
What is Albemarle Corporation?
Albemarle Corporation is a chemical company that sells lithium - a key material used in electric vehicle batteries, bromine specialties, and catalysts. While demand for the company’s products fell across the board over the first half of this year due to the impact of Covid-19, the stock has fared quite well rising by about 32% year to date ...
What is the growth of Albemarle?
Albermarle’s growth has been a mixed bag, with revenues remaining essentially flat between 2018 and 2020, and sales are projected to grow by just about 3% this year, per consensus estimates. However, investors are betting that the company’s lithium business - which presently accounts for about 37% of revenue - will drive longer-term growth, as the electrification of the auto industry gathers pace, leading to stronger demand for lithium used in EV batteries. For perspective, Albemarle projects that lithium demand will grow by about 31% CAGR between 2020 and 2025, reaching 1,140-kilo tons per annum (ktpa). Albemarle has also been scaling up capacity via its lithium resources in Chile and the United States and growing investments in Australia. The company’s lithium carbonate and hydroxide capacity is expected to grow from about 30 ktpa in 2016 to 175 ktpa by the end of 2021. Margins for the lithium segment are also thick, with EBITDA margins of 34% exceeding margins for the broader Chemicals and mining industry. [1] See our analysis on What Drove Albemarle’s Stock Price Over The Last 3 Years? for an overview of what has driven Albemarle Stock ALB +0.3%.
Where is Albermarle based?
Moreover, Albermarle is a U.S.-based company, while most other large lithium players are based in China and Latin America, and this could mean that investors will perceive its corporate governance and political risks to be lower, potential justifying a higher multiple.
Albemarle's growth catalysts remain as strong as ever
A Fool since 2011, Neha has a keen interest in materials, industrials, and mining sectors. Her favorite pastime: Digging into 10Qs and 10Ks to pull out important information about a company and its operations that an investor may otherwise not know. Other days, you may find her decoding the big moves in stocks that catch her eye.
What happened
Lithium stock Albemarle ( NYSE:ALB) shed 12.3% of its value in the month of December, according to data provided by S&P Global Market Intelligence.
So what
Lithium prices shot through the roof in 2021 as global demand for electric vehicles (EVs) zoomed. In fact, to simply say prices zoomed would be an understatement -- lithium carbonate prices in China gained a jaw-dropping 486% in 2021, according to data from Trading Economics.
Now what
Lithium prices are expected to rise even higher in 2022 on low supply and high demand. S&P Global market Intelligence projects global lithium supply to rise by almost 27% in 2022, but it sees demand growing at the same pace, which means the lithium market is expected to remain tight this year.
