High gas prices and government-driven climate change initiatives continue to spur demand for electric vehicles from the likes of Tesla, Nio and traditional automakers. That has sparked strong demand for lithium leader Albemarle, with ALB stock now charging up a new buy zone.
Albemarle has just landed a spot on the IBD Breakout Stocks Index. The leader in lithium and lithium derivatives has also mined its way onto the IBD Leaderboard watchlist.
ALB stock holds top billing among its Chemicals-Specialty industry group peers, with the highest-possible 99 Composite Rating. Fellow lithium plays Livent and Ashland, which made the latest list of new buys by the best mutual funds, also sport strong ratings in Stock Checkup.
See Who Joins ALB Stock On The IBD Breakout Stocks Index
EV-Driven Lithium Demand Powers Albemarle Growth
The explosion of EVs from Tesla, Nio and traditional automakers taps into today's climate-conscious zeitgeist. But Albemarle traces its history back to 1887.
Headquartered in North Carolina, the company is a top global producer of lithium, bromine and catalyst solutions.
It helps to power companies in many of the world's largest and most critical industries, such as energy, electronics, and transportation. As a lithium miner and refiner, Albemarle provides a critical component for batteries used in EVs and personal computers.
The company operates on a global scale, employing roughly 5,600, and serves customers in approximately 100 countries.
Analysts keep boosting forecasts, despite the rapidly-slowing economy.
After delivering 614% Q3 earnings growth, Wall Street sees a 672% EPS increase in the fourth quarter and profits ballooning 423% to $21.14 per share for the full year.
Sales surged a phenomenal 152% to $2.1 billion last quarter but that was actually below analyst views.
As the IBD Leaderboard team reports, Albemarle reaffirmed its full-year guidance for lithium division EBITDA growth of 500% to 550%. That outlook raises the potential for upside in average pricing, but we can't rule out possible downside in Q4 volume growth.
ALB Stock Charging New Breakout
With its relative strength line already hitting a new high, ALB stock is fueling a 308.34 buy point after retaking its 50-day moving average.
On Tuesday, Albemarle briefly cleared that entry before easing back to close below it. The stock has jumped sharply higher in good volume since the Nov. 2 earnings report.
While EV pioneer Tesla stock has struggled, let's see if ALB stock can keep riding the demand for lithium and mine a new breakout.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
