Today we are going to look at Albermarle Corporation (ALB) to see if you should buy or sell their stock. From the initial look at the charts, it looks like something is wrong with the company because the stock market has been doing amazing. But since 2018 the stock has been going lower. Something is wrong. We will look at the 7 fundamental parameters I look to see if a stock can be considered a growth stock.
Then we will take a look at the technical analysis side using the setups I have created and use for my trades. I have no plans to own Albermarle Corporation in the next 72 hours and do not hold any positions in ALB.
There are 7 fundamental markers I look for in a stock. I try to only purchase growth stocks so these are the parameters I look for to see if a stock meets the majority of the markers. I prefer to have all seven fulfilled. You can it more in depth here: https://evancarthey.com/how-to-scan-for-winning-stocks-an-insiders-view-to-my-process/
- Market Cap: > $300 million
- EPS growth past 5 years: >0%
- P/E: Over 10
- EPS growth next 5 years: >0%
- Sales growth past 5 years: Over 20%
- Debt/Equity: <0.1
- Sales growth qtr over qtr: Over 5%
Does the stock meet these 7 markers?
- Market Cap: 8.07B (YES)
- EPS growth past 5 years: 4.80% (YES)
- P/E: 12.49 YES
- EPS growth next 5 years: 13.29% (YES)
- Sales growth past 5 years: 4.80% (NO)
- Debt/Equity: 0.48 (NO)
- Sales growth qtr over qtr: 7.40% (YES)
I used Finviz.com for the fundamental analysis screener. With Albermarle Corporation hitting only 5 of the 7 markers it is not a growth stock in my eyes and not one I would be interested in. Also, it is worth noting the stock has had 3 downgrades since January 2019. There is something wrong with the stock but I can’t put my finger on it. In 2018 it was around $144 and now it is in the $70s.
Technical Analysis of Albermarle Corporation
The first setup ALB is in is the 61B long setup. The current exit is the pink line at $107.34. But if the price goes down and hits the 61.8% Fibonacci retracement level then the exit moves to the purple line at $82.07. If the price goes down to the 100% line before hitting either of those exits 1st then the exit moves to the green line at $65.29. After that, the exit doesn’t move again even if the price keeps going lower.
If you are looking for a short then there is a potential one I found. It isn’t yet live though. You will need to wait until the price breaks $71.87, then the exit will be the orange line at $69.44.
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