Charlotte, North Carolina-based Albemarle Corporation (ALB) develops, manufactures, and markets engineered specialty chemicals for mobility, energy, connectivity, and health solutions. With a market cap of $8.8 billion, the company offers critical ingredients used in grid storage, automotive, aerospace, conventional energy, electronics, construction, agriculture and food, pharmaceuticals, and medical devices.
Shares of this lithium giant have significantly underperformed the broader market over the past year. ALB has declined 34.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. In 2025, ALB stock is down 12.1%, compared to the SPX’s 3.2% rise on a YTD basis.
Narrowing the focus, ALB’s underperformance looks less pronounced compared to the Global X Lithium & Battery Tech ETF (LIT). The exchange-traded fund has declined about 3.8% over the past year. Moreover, the ETF’s 1.3% dip on a YTD basis outshine the stock’s double-digit losses over the same time frame.
The reason for ALB's disappointing performance can be linked to the reduced demand for energy storage and lower pricing in the lithium market.
On Nov. 6, ALB shares closed down more than 3% after reporting its Q3 results. The company’s revenue was $1.35 billion, falling short of Wall Street forecasts of $1.39 billion. ALB expects full-year revenue in the range of $5.5 billion to $6.2 billion.
For the current fiscal year, ended in December 2024, analysts expected ALB’s loss per share to decline 107.7% to $1.72 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
Among the 26 analysts covering ALB stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” and two “Strong Sells.”
The configuration has been fairly stable over the past three months.
On Feb. 5, Evercore ISI downgraded to “In Line” rating on ALB with a price target of $88, implying a potential upside of 16.2% from current levels.
The mean price target of $112.46 represents a 48.6% premium to ALB’s current price levels. The Street-high price target of $170 suggests an ambitious upside potential of 124.6%.
