Albemarle Stock Near Crucial Support Level – Buy Signal Ahead
Albemarle (ALB) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($91.67 – $101.33), levels from which it has bounced meaningfully before. In the last 10 years, Albemarle stock received buying interest at this level 5 times and subsequently went on to generate 66.4% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 2/28/2017 | 5.6% | 55 |
| 4/24/2017 | 8.0% | 46 |
| 6/15/2017 | 36.7% | 146 |
| 10/19/2020 | 257.1% | 753 |
| 9/16/2024 | 24.6% | 77 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For ALB Read Buy or Sell ALB Stock to see how convincing this buy opportunity might be.
Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Let us ask you this: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed – the S&P 500, S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.
Here are some quick data points for Albemarle that should help decision:
- Revenue Growth: -33.0% LTM and 22.4% last 3 year average.
- Cash Generation: Nearly -3.6% free cash flow margin and -4.6% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for ALB was -33.0%.
- Valuation: ALB stock trades at a PE multiple of -12.2
- Opportunity vs S&P: Compared to S&P, you get lower valuation, higher 3 year average revenue growth, and lower margins
For quick background, Albemarle provides engineered specialty chemicals across Lithium, Bromine, and Catalysts segments, including lithium compounds, fire safety solutions, chemical synthesis additives, and industrial purification products.
| ALB | S&P Median | |
|---|---|---|
| Sector | Materials | – |
| Industry | Specialty Chemicals | – |
| PE Ratio | -12.2 | 23.8 |
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| LTM* Revenue Growth | -33.0% | 5.2% |
| 3Y Average Annual Revenue Growth | 22.4% | 5.3% |
| Min Annual Revenue Growth Last 3Y | -33.0% | -0.1% |
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| LTM* Operating Margin | -4.6% | 18.6% |
| 3Y Average Operating Margin | 2.4% | 17.8% |
| LTM* Free Cash Flow Margin | -3.6% | 13.3% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
That said, ALB hasn’t been immune to big drops. It fell about 41% in the Dot-Com crash and plunged more than 66% during the Global Financial Crisis. The 2018 correction wiped out nearly 58%, while the inflation shock took it down around 65%. Even the Covid sell-off saw a dip close to 46%. Solid fundamentals matter, but when the market tanks, ALB can take a serious hit too.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read ALB Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.