Trade-Ideas LLC identified Albemarle ( ALB) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Albemarle as such a stock due to the following factors:

  • ALB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.4 million.
  • ALB has traded 497,227 shares today.
  • ALB is trading at 8.01 times the normal volume for the stock at this time of day.
  • ALB is trading at a new high 5.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on ALB:

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. The stock currently has a dividend yield of 2.2%. ALB has a PE ratio of 43. Currently there are 7 analysts that rate Albemarle a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Albemarle has been 1.3 million shares per day over the past 30 days. Albemarle has a market cap of $5.9 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.73 and a short float of 9.3% with 6.63 days to cover. Shares are down 5.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Albemarle as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 40.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $183.72 million or 35.69% when compared to the same quarter last year. In addition, ALBEMARLE CORP has also vastly surpassed the industry average cash flow growth rate of -32.48%.
  • 42.97% is the gross profit margin for ALBEMARLE CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.22% trails the industry average.
  • Even though the current debt-to-equity ratio is 1.22, it is still below the industry average, suggesting that this level of debt is acceptable within the Chemicals industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.70 is weak.
  • ALBEMARLE CORP's earnings per share declined by 42.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, ALBEMARLE CORP reported lower earnings of $2.56 versus $4.89 in the prior year. This year, the market expects an improvement in earnings ($3.74 versus $2.56).

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