Albemarle Corporation (ALB) Buy or Sell Stock Guide

Last updated: Apr 12, '19

Are you looking for the analysis of Albemarle Corporation (ALB) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 7 reasons to buy and 4 reasons to sell ALB stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about ALB stock:

  • Is ALB a buy or a sell?
  • Should I sell or hold ALB stock today?
  • Is ALB a good buy / investment?
  • What are ALB analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ALB stock:

1. Albemarle has top-tier lithium assets through its brine operations in Chile, which are among the lowest-cost globally.

2. The company has tremendous upside to electric vehicle growth through lithium batteries. Its Talison joint venture is one of the few large operations that can significantly ramp up production over the next few years to meet incremental demand.

3. Albemarle also has low-cost bromine production through its highly concentrated brines in the Dead Sea and Arkansas.

4. ALB quarterly revenue growth was 7.50%, higher than the industry and sector average revenue growth (5.55% and 2.83%, respectively). See ALB revenue growth chart.

5. ALB forward dividend yield is 1.79%, higher than the industry (0.64%) and sector (0.25%) forward dividend yields. See ALB forward dividend chart.

6. ALB average analyst rating is Buy. See ALB analyst rating chart.

7. ALB average analyst price target ($106.88) is above its current price ($82.71). See ALB price target chart.

Now that you understand the bull case, let’s look at the reasons to sell ALB stock (i.e., the bear case):

1. Albemarle's core bromine business has suffered from weaker demand for flame retardants, its primary end market, as consumers shift from televisions, desktops, and laptops to less-bromine-intensive tablets and mobile phones.

2. Weakness in oil markets negatively affects demand for bromine, which is used in completion fluids.

3. The decline in oil prices has led some oil refiners to hold off on replacing their hydroprocessing catalysts, which need to be placed once every one to three years.

4. ALB short interest (days to cover the shorts) ratio is 7.73. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ALB short interest ratio chart.

Now let's look at the key statistics for ALB:

Metrics ALB
Price $74.87
Average Price Target / Upside $106.88 / 42.75%
Average Analyst Rating Buy
Industry Specialty Chemicals
Sector Basic Materials
Number of Employees 5,900
Market Cap $8.74B
Forward P/E Ratio 12.2
Price/Book Ratio 2.59
PEG 1.01
Revenue (TTM) $3.37B
YoY Quarterly Revenue Growth 7.5%
Profit Margin 20.55%

What are your thoughts on ALB?

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