#1 - Albemarle (NYSE:ALB)
As of this writing, Albemarle Corp. (NYSE: ALB) was just under the $10 billion threshold for mid-cap stocks. The reason is that Albemarle is a lithium miner, and its price is highly correlated with the price of lithium. Weaker-than-expected demand for electric vehicles (EVs) has kept the sector well supplied and has ALB stock down more than 39% in 2024.
The company’s second-quarter earnings report in July only increased the slide in its stock. Albemarle missed on the top and bottom lines with numbers that show the year-over-year (YOY) volatility that is common with commodity stocks. Some of that miss was due to the company taking write-downs on projects that require higher lithium prices.
However, this is likely a case where demand delayed is not the same as demand denied. It seems more likely than not that lithium demand will increase and with it, lithium prices. That's bullish for ALB stock. While you wait, you can collect a safe, albeit unspectacular dividend, with a 1.84% yield, but one that has been growing for 30 consecutive years.
About Albemarle
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Energy Storage, Specialties and Ketjen. The Energy Storage segment offers lithium compounds, including lithium carbonate, lithium hydroxide, and lithium chloride; technical services for the handling and use of reactive lithium products; and lithium-containing by-products recycling services.
Read More - Current Price
- $106.45
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 15 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $114.47 (7.5% Upside)
