Actions of Albemarle Company ALB has climbed about 46% in the past six months. The company benefits from higher lithium prices and volumes, capacity expansion and cost reduction actions.
We are positive about the outlook for the company and believe the time has come for you to add the stock to the portfolio as it looks promising and is poised to build on its momentum.
Let’s take a closer look at the factors that make this Zacks Rank # 1 (strong buy) stock an attractive choice for investors right now.
Outperforming
Albemarle shares are up 56.6% year-to-date against its industry’s 12.9% rise. It also outperformed the 25.4% rise in the S&P 500 over the same period.
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History of positive earnings surprise
Albemarle has beaten Zacks’ consensus estimate in each of the past four quarters. During that time, it generated a surprise profit of around 22.1% on average.
Rising estimates
Over the past two months, Zacks’ consensus estimate for Albemarle for 2021 has risen by about 12.7%. The consensus estimate for the fourth quarter of 2021 has also been revised upwards by 15.7% over the same period. The favorable estimate revisions inspire investor confidence in the stock.
Growth engines in place
Albemarle benefits from higher volumes in its lithium business thanks to the continued recovery in global economic activities. Healthy customer orders and improvements in plant productivity are supporting volumes. Higher lithium prices due to tense market conditions are also supporting its performance. Its bromine business is also benefiting from higher demand, a rebound in certain end markets, higher prices and cost reduction actions. Albemarle is experiencing a high demand for flame retardants.
The company is also strategically executing plans to increase its global lithium derivatives capacity. It remains focused on investing in high yield projects to boost productivity. The company is well positioned to take advantage of the long-term growth of the battery grade lithium market.
Albemarle also benefits from cost reduction and productivity initiatives. Its actions on costs should support its margins. The company plans to achieve $ 75 million in year-over-year productivity improvement in 2021.
The company also remains committed to delivering additional returns to its shareholders. It has increased its annual dividend for the 27th consecutive year. Albemarle remains focused on sustaining his dividend payment. The company also remains committed to maintaining adequate financial flexibility with abundant liquidity. It had approximately $ 2 billion in cash at the end of the third quarter of 2021.
Actions to consider
Some other top-ranked actions to consider in the basic materials space include Nutrien Ltd. RNT, AdvanSix Inc. ASIX and Intrepid Potash, Inc. IPI, each sporting a Zacks Rank # 1. You can see The full list of today’s Zacks # 1 Rank stocks here.
Nutrien has an expected profit growth rate of 233.3% for the current year. Zacks’ consensus estimate for NTR’s current year earnings has been revised up 18.1% in the past 60 days.
Nutrien has beaten Zacks’ consensus estimate for gains in three of the past four quarters while missing once. It has a surprise profit over the last four quarters of around 73.5% on average. NTR has grown by about 49% in one year.
AdvanSix has a projected profit growth rate of 194.5% for the current year. ASIX’s consensus estimate for the current year has been revised upwards by 5.9% over the past 60 days.
AdvanSix beat Zacks’ consensus estimate for earnings for each of the past four quarters, averaging 46.9%. ASIX has grown by around 114% in one year.
Intrepid Potash has a projected profit growth rate of 244.7% for the current year. The consensus estimate for the current year of the IPI has been revised upward by 3.3% in the last 60 days.
Intrepid Potash has beaten Zacks’ consensus estimate for gains in three of the past four quarters while missing once. It has a surprise profit over the last four quarters of around 132.9% on average. IPI shares have jumped about 157% in a year.
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Albemarle Corporation (ALB): Free Stock Analysis Report
Intrepid Potash, Inc (IPI): Free Stock Analysis Report
AdvanSix (ASIX): Free Stock Analysis Report
Nutrien Ltd. (NTR): Free Stock Analysis Report
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