TSLA - Albemarle Isn't Dead Money As Pessimism Peaks
2024-06-11 09:00:00 ET
Summary
- Albemarle Corporation stock has continued to disappoint investors.
- Lithium pricing weakness has persisted into 2024, underscoring the caution in downstream players.
- ALB anticipates a more robust second half, although I expect weakness to persist.
- Despite that, the worst is still assessed to be over, presenting an appealing long-term buying opportunity.
- Despite its underperformance, I argue why I'm still focused on ALB's recovery thesis. Don't give up, as pessimism has likely peaked.
Albemarle Stock's Underwhelming Performance
To say that I've not been disappointed with Albemarle Corporation ( ALB ) stock's performance over the past five months is an understatement. ALB has continued to hover close to its March 2024 lows, even as the S&P 500 ( SPX ) ( SPY ) surged to a new high recently. Therefore, ALB's relative underperformance has also resulted in a portfolio drag, emphasizing the importance of being well-diversified (thankfully, I am!). I highlighted my confidence that ALB's bullish thesis was just getting started in my previous article in March. However, the underwhelming lithium market dynamics have persisted, leading to ALB's underperformance....
Albemarle Isn't Dead Money As Pessimism Peaks