Albemarle Stock Is Plunging. This Is Why. - Barron'sSkip to Main ContentThis copy is for your personal, non- commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800- 843-0008 or visit www.djreprints.com.# Albemarle Stock Is Plunging. This Is Why.By [Al Root]ShareResize--- ReprintsIn this article[ALB][SPX][DJIA]A lithium-mine worker inspects machinery ...

Rare-earth mining stocks slid after a report suggested the U.S. may rethink price-floor support—but analysts say government backing remains intact. ...

Core Viewpoint - The Trump administration is reversing its previous commitments to guarantee price floors for domestic critical mineral projects, leading to a significant decline in rare earth and critical minerals stocks [1][2]. Reported Policy Change - Senior administration officials have indicated that future projects must demonstrate "financial independence" without federal price supports, marking a departure from last year's aggressive support for the domestic rare earth supply chain [2]. Stock Market Impact - The news resulted in a sharp sell-off in rare earth and critical minerals stocks, with companies like MP Materials publicly disputing the accuracy of the report and asserting that their existing government contracts remain intact [3][4]. Controversy - The report faced backlash for its accuracy, with MP Materials labeling it as "fake news" and U.S. Antimony calling it "inaccurate, misleading, and inconsistent with the facts." A post-publication edit by Reuters clarified that the policy change applies to future projects rather than existing contracts [3][4]. CEO Sparring - The social media exchange included MP Materials targeting Tony Sage, CEO of Critical Metals, highlighting the competitive tensions within the industry as MP defended its operations against perceived misleading reporting [5]. Takeaway - Despite the recent sell-off, rare earth stocks have experienced significant gains under the Trump administration's policies aimed at reshoring supply chains, suggesting that one report may not significantly impact long-term investor confidence while awaiting further clarity from government policies [6].

Group 1: Corporate Responses to Social Issues - The killing of Alex Pretti by federal agents has led to scrutiny of corporate executives as they navigate political tensions following Trump's return to office [2][3] - Incoming Target CEO Michael Fiddelke expressed the pain caused by violence in the community but did not directly address Trump or the victims [3] - Several Big Tech executives have remained silent on the incident, contrasting their vocal responses to the George Floyd case in 2020 [3] Group 2: Corporate Earnings and Stock Movements - General Motors shares rose over 4% after beating earnings expectations, announcing a 20% quarterly dividend increase and a $6 billion share repurchase authorization [5] - Despite slightly missing Wall Street's revenue forecast, GM pre-announced special charges related to legal matters and its headquarters move [6] - American Airlines missed expectations but saw a 3% rise in shares due to a positive revenue growth outlook for 2026, while Boeing shares increased by 1% after reporting higher-than-anticipated revenue [7] Group 3: Employment Changes in Major Companies - Nike is laying off 775 workers, primarily in distribution centers in Tennessee and Mississippi, as part of a strategy to streamline operations and return to profitable growth [10][11] - This layoff follows a previous announcement of 1,000 corporate job reductions made by Nike last summer [11] Group 4: Retail Investment Trends - The five-year anniversary of the GameStop short squeeze highlights the ongoing impact of retail investing, with individual investors now accounting for nearly 20% of average daily trading volume in U.S. equities, up from low single digits pre-pandemic [12][13] - Retail flows in 2025 were reported to be around 17% higher than during the meme stock mania in 2021, indicating sustained interest from retail investors [13] - GameStop shares increased by 4% after investor Michael Burry announced his purchase of the stock, emphasizing belief in the company's strategy rather than a reliance on short squeezes [14]

Core Viewpoint - The price of lithium is increasing due to improving demand and decreasing inventory, with Albemarle's stock rising significantly as a result [1] Group 1: Analyst Upgrades - Albemarle received four analyst price target upgrades this week, ranging from $180 to $210, reflecting the company's strong fundamentals and improving end markets [1][2] - The combination of cost-cutting measures, a doubling in lithium carbonate prices over the past year, and a growing energy storage market positions Albemarle for significant profit increases by 2026 [2] Group 2: Financial Performance - The current stock price of Albemarle is approximately $189.51, with a market cap of $22 billion and a gross margin of 12.27% [3] - Analyst consensus predicts earnings per share for Albemarle to improve to $2.29 in 2026 from a loss of $0.84 in 2025, indicating a significant turnaround [3] Group 3: Market Dynamics - The lithium market experienced a boom due to increased demand from electric vehicle batteries, followed by a slump as automakers reduced investments due to lower-than-expected EV sales [3][5] - Major automakers like Ford and General Motors are increasing investments in battery manufacturing, while Tesla reports strong growth in its energy generation and storage business, contributing to a recovery in lithium demand [5] Group 4: Future Outlook - There is a strong expectation for recovery in the lithium market by 2026, which may lead to further upgrades in Albemarle's earnings estimates if lithium prices continue to rise [6]

Core Viewpoint - Dividend stocks are preferred for stability rather than high returns, often lagging behind the S&P 500, but some can outperform the market [1][2] Group 1: Dividend Aristocrats - Dividend Aristocrats are S&P 500 companies that have increased dividends for at least 25 consecutive years, providing reliable income while potentially outperforming the market [3] - A recent analysis focused on identifying Dividend Aristocrats that have exceeded the S&P 500's 52-week return of 13.59% [3] Group 2: Stock Selection Criteria - The stock selection was based on filters including 52-week performance difference from the market, current analyst ratings between 3.5 to 5, and a minimum of 12 analysts for stronger consensus [5] - A total of 15 stocks were identified, with a focus on the three that showed the highest 52-week percent change [4] Group 3: Albemarle Corp (ALB) - Albemarle Corp is the largest lithium producer globally, essential for electric vehicle batteries, and utilizes advanced technologies for competitive advantage [7] - The company reported a 4% year-over-year decline in sales to $1.3 billion, but net loss improved by 85% to nearly $161 million [7] - Albemarle offers a forward annual dividend of $1.62, yielding approximately 0.9%, while its stock price surged by 108.66% over the past 52 weeks, significantly outperforming the S&P 500 [8] - The stock is rated a "Moderate Buy" by 26 analysts, with a potential upside of 12% towards a target price of $210 [8]

Group 1 - Citigroup raised the target price for US-based AbbVie from $150 to $180 while maintaining a "Neutral" rating [1] - Truist significantly increased the target price for US-based AbbVie to $205 [1]

Group 1 - Truist Securities raised the target price for US-based Yabo from $125 to $205, indicating a significant increase in valuation [1] - The rating for Yabo was upgraded from "Hold" to "Buy," suggesting a more favorable outlook for investors [1]

Core Viewpoint - Top Wall Street analysts have revised their outlook on several prominent stocks, indicating potential investment opportunities in the market [1] Company Insights - Analysts are considering buying ALB stock, suggesting a positive sentiment towards the company's future performance [1]

Core Viewpoint - Albemarle Corporation is a key player in the global lithium market, essential for the electric vehicle industry, despite challenges like fluctuating lithium prices and a slowdown in EV investment growth [1] Group 1: Stock Performance - HSBC has set a price target of $200 for Albemarle, indicating a potential increase of 22.67% from its trading price at the time [2] - The stock has experienced a 31.8% surge over the past month, significantly outperforming the Basic Materials sector's gain of 8.62% [2][3] Group 2: Earnings Expectations - Investors are anticipating Albemarle's earnings report on February 11, 2026, with expectations for an EPS of -$0.62, reflecting a 43.12% year-over-year improvement [3] - Revenue forecasts suggest an 11.18% increase to $1.37 billion [3] Group 3: Strategic Focus - The company is focusing on cost reductions and divestitures to streamline core operations, which, along with a positive outlook on the lithium market, positions Albemarle for a potential rebound in 2026 [3] - Analysts project a significant recovery in earnings, with Wall Street consensus estimates indicating a robust rebound in EBITDA for the years 2025-2027 [3]