Best Stocks for 2017, No. 2: Albemarle (ALB)
Q1 Performance: 23%
Investor: Matt McCall
Albemarle Corporation (NYSE:ALB) has been lighting Wall Street on fire this year amid an emphasis on increasing its lithium output. Two big moves have helped Albemarle on this front:
First, in January, it amended an agreement with the Chilean Economic Development Agency, pushing the terms out for 27 years. Then in March, Talison (ALB’s joint venture in Australia) agreed to expand its lithium production at the Greenbushes mine. This should double the current output.
A big chunk of ALB’s gains came in the wake of its latest earnings release. Adjusted earnings of 78 cents a share were better than expectations for 75 cents a share, and revenue of $696.7 million bested estimates of $646.4 million.
Management guided for plenty of growth in the next year, including 17% gains in EPS, but Matt is even more bullish:
“In the end, I think those estimates are too low and suspect the company will continue its trend of beating the Street’s expectations.”