Albemarle’s stock performance
Albemarle (ALB) investors have a reason to smile with the stock’s stellar performance so far in 2017. As of June 8, 2017, ALB has risen a staggering 32.7%, outperforming the broader based SPDR S&P 500 ETF (SPY), which has returned 9.0% for the same period. ALB outperformed its peers W.R. Grace (GRA) and Sociedad Química y Minera de Chile (SQM), which rose 2.9% and 23.2%, respectively. However, ALB underperformed FMC (FMC), which rose 34.8%.
Albemarle’s strong performance can mainly be attributed to its better-than-expected 1Q17 earnings. The strong demand for lithium helped ALB post strong earnings and raise its sales and adjusted EPS (earnings per share) forecast for fiscal 2017. The company has revised its fiscal 2017 revenue to $2.9 billion–$3.05 billion against the earlier guidance of $2.8 billion–$2.95 billion. Similarly, ALB raised its 2017 adjusted EPS to $4.20–$4.40 against the earlier guidance of $4–$4.25. Also, ALB retired some of its debt from what it received from the divestiture of its Chemetall Surface Treatment business. As a result, ALB’s interest expense is expected to come down, which could help it improve its net income.
Moving average trends
As of June 8, 2017, Albemarle stock closed at $114.27 and traded 10.0% above its 100-day moving average of $103.30, which indicates an upward trend in the stock. Its 52-week low is $74.86, while its 52-week high is $114.76.
The company’s 14-day RSI (relative strength index) of 66 indicates that the stock isn’t overbought or oversold. An RSI score of 70 indicates that the stock has moved temporarily into an overbought position, while an RSI score below 30 indicates that a stock has moved temporarily into an oversold position.
In this series, we’ll be looking at Albemarle’s latest dividend, dividend yield, and analyst recommendations.