ALB Stock Surges 19% With A 6-day Winning Spree On Analyst Upgrades
Albemarle (ALB) – a manufacturer of lithium compounds, bromine chemicals, and catalysts – hit 6-day winning streak, with cumulative gains over this period amounting to a 19%. The company market cap has surged by about $3.7 Bil over the last 6 days, and currently stands at $23 Bil.
The stock has YTD (year-to-date) return of 37.3% compared to 1.9% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Multiple Analyst Upgrades and Price Target Hikes
- RBC Capital raised its price target to $200 from $159
- Baird upgraded its rating to Outperform with a $210 price target
- Impact: Significant stock price appreciation, Increased investor confidence
[2] Improving Lithium Market Fundamentals
- Lithium pricing improved through Q4 with inventories declining to their lowest levels since 2023
- Asian spot prices for lithium reached recent highs of nearly $17/kg
- Impact: Positive industry sentiment, Expectation of higher future earnings
Opportunity or Trap?
Below is our take on valuation.
There are several things to fear in ALB stock given its overall Weak operating performance and financial condition. This isn’t appropriately reflected in the stock’s Moderate valuation which is why we think it is Unattractive (For details, see Buy or Sell ALB).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for ALB stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | ALB | S&P 500 |
|---|---|---|
| 1D | 2.3% | 0.4% |
| 6D (Current Streak) | 19.1% | 0.6% |
| 1M (21D) | 30.8% | 0.7% |
| 3M (63D) | 84.4% | 2.8% |
| YTD 2026 | 37.3% | 1.9% |
| 2025 | 67.7% | 16.4% |
| 2024 | -39.5% | 23.3% |
| 2023 | -32.8% | 24.2% |
However, big gains can follow sharp reversals – but how has ALB behaved after prior drops? See ALB Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 55 S&P constituents with 3 days or more of consecutive gains and 62 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 22 | 35 |
| 4D | 10 | 23 |
| 5D | 17 | 0 |
| 6D | 3 | 4 |
| 7D or more | 3 | 0 |
| Total >=3 D | 55 | 62 |
Key Financials for Albemarle (ALB)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $9.6 Bil | $5.4 Bil |
| Operating Income | $190.2 Mil | $-642.2 Mil |
| Net Income | $1.6 Bil | $-1.2 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $1.3 Bil | $1.3 Bil |
| Operating Income | $52.0 Mil | $-33.6 Mil |
| Net Income | $22.9 Mil | $-160.7 Mil |
While ALB stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. 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.