Albemarle Stock Jump Looks Great, But How Secure Is That Gain?
Albemarle (ALB) stock is up 11.9% in 5 trading days. The rally reflects strong energy storage growth and aggressive cost cuts, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn reslience, let’s look at where Albemarle stands today.
- Size: Albemarle is a $17 Bil company with $4.9 Bil in revenue currently trading at $146.70.
- Fundamentals: Last 12 month revenue growth of -23.9% and operating margin of 0.4%.
- Liquidity: Has Debt to Equity ratio of 0.22 and Cash to Assets ratio of 0.11
- Valuation: Albemarle stock is currently trading at P/E multiple of -816.1 and P/EBIT multiple of 4089.1
- Has returned (median) 45.9% within a year following sharp dips since 2010. See ALB Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside Moderate valuation – making the stock Unattractive. For details, see Buy or Sell ALB Stock
That brings us to the key consideration for investors chasing this rally: how resilient is ALB stock if markets turn south? This is where our downturn resilience framework comes in. Suppose ALB stock falls 20-30% to $103 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- ALB stock fell 65.2% from a high of $325.38 on 11 November 2022 to $113.26 on 5 December 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $152.39 on 26 December 2023 , and currently trades at $146.70
| ALB | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -65.2% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- ALB stock fell 46.0% from a high of $94.31 on 20 February 2020 to $50.90 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 September 2020
| ALB | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.0% | -33.9% |
| Time to Full Recovery | 162 days | 148 days |
2018 Correction
- ALB stock fell 59.0% from a high of $144.58 on 8 November 2017 to $59.30 on 27 August 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 22 December 2020
| ALB | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -59.0% | -19.8% |
| Time to Full Recovery | 483 days | 120 days |
2008 Global Financial Crisis
- ALB stock fell 66.9% from a high of $47.76 on 31 October 2007 to $15.81 on 5 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 5 October 2010
| ALB | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -66.9% | -56.8% |
| Time to Full Recovery | 579 days | 1,480 days |
Feeling jittery about ALB stock? Consider portfolio approach.
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