Top Stock Pick of the Year: ALB

Alphanso’s AI Stock Research picked ALB as one of the top stocks of the year.

Alphanso Rating: 9.7/10

Return Potential: 36%

ALB (Albemarle Corporation) stands out due to its enticing industry tailwinds and market leader positioning.  

Fundamental Metrics:

1. Free cash flow yield of 4.35% indicates a very sustainable business
2. Revenue growth (fwd) of 46% vs 4% sector median and EBITDA growth (fwd) of 62% vs 1.8% sector median suggests that its products are highly competitive
3. EBITDA margin of 37% vs sector median of 17% suggests strong pricing power and economies of scale.
4. The ROE of 50% vs sector median of 8% indicates that its management is highly efficient and shareholder-friendly.
5. $ALB has beaten earning expectations during most of the recent quarters, and operates in an industry (Lithium Chloride) which is poised to grow at 6.5% CAGR for next 10 years. Hence, as a market leader, it has high upward potential for the medium-long term.

Technical Metrics:

Based on the Alphanso model, the stock is trading below the expected channel (range) of $-238.6- 253.3