This is why tracking stocks that have been beaten down can be lucrative, as long as the fundamentals align for the opportunity to become real and not just a trap. Hundreds of investors have been trapped throughout history by buying beaten-down stocks on price alone, only to hold a losing position for a long time. Because the homework wasn’t done correctly, these buyers were pointed in the right fundamental direction.
Today’s divergence between price and fundamentals comes in shares of Albemarle Co. (NYSE: ALB), a chemical player in the United States' manufacturing sector. While there are many reasons to keep the price low as it is today, due to the volatility and uncertainty regarding global trade as President Trump shifts the landscape through tariffs, the future of Albemarle represents a fantastic risk-to-reward ratio for buyers today.
