Over the past two months, the Zacks Consensus Estimate for Albemarle for 2021 has increased around 12.7%. The consensus estimate for fourth-quarter 2021 has also been revised 15.7% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.17 Dec 2021
Why is Albemarle stock dropping?
Since hitting its peak in 2017, Albemarle has seen its stock slide by more than 50% due almost entirely to the lithium oversupply problem. In response to the supply glut, the company decided to mothball its plans to add an extra 125,000 tons of processing capacity across all its facilities.
Is ALB overvalued?
The stock of Albemarle (NYSE:ALB, 30-year Financials) is estimated to be significantly overvalued, according to GuruFocus Value calculation. At its current price of $173.54 per share and the market cap of $20.3 billion, Albemarle stock shows every sign of being significantly overvalued.6 Jun 2021
Is ALB stock a good investment?
The financial health and growth prospects of ALB, demonstrate its potential to underperform the market. It currently has a Growth Score of D. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.
Albemarle is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past 90 days, the Zacks Consensus Estimate for ALB's full-year earnings has moved 11.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.27 Dec 2021
Is lithium overvalued?
The demand for lithium has now outstripped its supply, leading to record high lithium prices. With supply constraints expected to remain well into 2022, lithium prices are expected to remain elevated. They look overvalued at their current price levels. Also, analysts have recently downgraded them.17 Dec 2021
Is it too late to buy lithium stocks?
Most of the experts who understand the value of lithium production would say that it's nowhere near too late to be investing in lithium as a resource.
Is lithium good investment?
Some of the best lithium stocks have already witnessed a sharp rally in 2020 and 2021. It's likely that the rally will sustain in 2022 and demand continues to grow. Lithium carbonate demand in 2020 was 305,000 tons. Additionally, demand is expected to increase by 14-fold to 1.8 million tons by 2030.21 Dec 2021
What's Going in ALB's Favor? Albemarle is benefiting from higher volumes in its lithium business on continued recovery in global economic activities. Its bromine business is also gaining from higher demand, a rebound in certain end markets, higher pricing and cost-saving actions.4 Jan 2022