Valued at a market cap of $6.7 billion, Albemarle Corporation (ALB) is a global specialty chemicals company headquartered in Charlotte, North Carolina. It is one of the world’s largest producers of lithium compounds, supplying essential materials for electric vehicle batteries, energy storage systems, and consumer electronics.
Companies valued $2 billion or more are typically classified as “mid-cap stocks,” and ALB fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the specialty chemicals industry. The company's key strength lies in its leadership position in the global lithium market, supported by a diversified portfolio of both brine and hard-rock lithium assets, giving it flexibility and scale in production. Beyond lithium, it is also a major player in bromine specialties, providing flame retardants, pharmaceutical intermediates, and other high-value products. It benefits from strong global footprint, advanced R&D capabilities, and strategic focus on clean energy transitions.
This specialty chemicals company has slipped 50.3% from its 52-week high of $113.91, reached on Dec. 9, 2024. Shares of ALB have declined 26.4% over the past three months, considerably lagging behind the S&P 500 Index’s ($SPX) 5.4% return during the same time frame.
In the longer term, ALB has fallen 39.6% over the past 52 weeks, considerably underperforming SPX’s 9% rise over the same time frame. Moreover, on a YTD basis, shares of ALB are down 34.2%, compared to SPX’s 1.5% gain.
To confirm its bearish trend, ALB has been trading below its 200-day moving average over the past year, with slight fluctuations, and has remained below its 50-day moving average since mid-December, 2024, with minor fluctuations.
On Apr. 30, shares of ALB plunged 1.5% after its Q1 earnings release. The company reported revenue of $1.1 billion, down 20.9% year-over-year, mainly driven by lower pricing in its energy storage segment and a decline in volumes in its Ketjen segment. Moreover, its adjusted bottom line swung to a loss of $0.18 per share, compared to an adjusted profit of $0.26 per share in the same quarter last year. Its adjusted EBITDA also fell 8.3% year-over-year to $267.1 million.
Albemarle has also lagged behind its rival, Sociedad Química y Minera de Chile S.A. (SQM), which declined 20.6%over the past 52 weeks and 11.8% on a YTD basis.
Despite ALB’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 24 analysts covering it, and the mean price target of $79.25 suggests a 39.9% premium to its current price levels.
