How Is Albemarle's Stock Performance Compared to Other Basic Material Stocks?
With a market cap of $8.8 billion, Albemarle Corporation (ALB) is a leading global specialty chemicals company with strong positions in key markets such as energy storage, consumer electronics, and automotive. The company operates through three segments: Energy Storage, Specialties, and Ketjen, providing advanced lithium, bromine, and catalyst solutions.
Companies worth less than $10 billion are generally described as “mid-cap” stocks, and Albemarle fits this criterion perfectly. Headquartered in Charlotte, North Carolina, its products support critical applications, including lithium-ion batteries for electric vehicles, fire safety compounds, and clean fuel technologies.
However, the specialty chemicals company pulled back 45.6% from its 52-week high of $137.50. Shares of ALB have declined 15.3% over the past three months, lagging behind the Materials Select Sector SPDR Fund's (XLB) 2% rise over the same time frame.
Longer term, ALB stock is down 13.2% on a YTD basis, underperforming XLB’s nearly 3% gain. In addition, shares of Albemarle have dipped nearly 42% over the past 52 weeks, compared to XLB’s 6.5% drop over the same time frame.
ALB stock has been trading mostly below its 50-day and 200-day moving averages since last year.
Despite reporting a weaker-than-expected Q4 2024 adjusted loss of $1.09 per share and revenue of $1.2 billion, Albemarle's shares rose 3.5% the next day due to optimism around its aggressive cost-cutting measures. Investors responded positively to the company's plans to cut its 2025 capital expenditures to $700 million - $800 million, roughly half of 2024’s budget. Additionally, the company posted a GAAP profit of $33.6 million, a sharp turnaround from the prior year’s $617.7 million loss, which reassured investors despite weak lithium prices.
Nevertheless, in comparison, rival Linde plc (LIN) has significantly outperformed ALB. Linde's shares have declined marginally over the past 52 weeks and returned 11% on a YTD basis.
Despite Albemarle’s weak performance, analysts are moderately optimistic about its prospects. The 25 analysts covering the stock have a consensus rating of “Moderate Buy,” and as of writing, it is trading below the mean price target of $99.80.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.