Albemarle Shares Rally 81% in 3 Months: What's Driving the Stock?

Albemarle Corporation’s ALB shares have shot up 81.3% over the past three months. The company has also outperformed the Zacks Chemical - Diversified industry’s 12.2% decline over the same time frame. The rally has been driven by the company’s forecast-topping earnings performance, aided by volume growth in the Energy Storage segment and its cost reduction efforts.Image Source: Zacks Investment ResearchLet’s take a look into the factors that are driving ALB stock.ALB Gains on Lithium Project Expansion & ProductivityAlbemarle is well-placed to gain from long-term growth in the battery-grade lithium market. The market for lithium batteries and energy storage remains strong, especially for electric vehicles (EVs), offering significant opportunities for the company to develop innovative products and expand capacity. Lithium demand is expected to grow on the back of significant global EV penetration. Global EV sales surged 30% year over year this year through September 2025, driven by China and Europe battery electric vehicles, per the company. Lithium demand also rose 30% on the back of energy transition and higher global demand for EVs and grid storage. ALB expects lithium demand to rise at a compound annual growth rate (CAGR) of 15-30% from 2024 to 2030.The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion, and plant productivity improvements are supporting its volumes. ALB saw higher sales volumes in its Energy Storage unit in the third quarter of 2025 on record production from its integrated conversion facilities. The Salar yield improvement project in Chile has achieved a 50% operating rate. The ramp-up at the Meishan lithium conversion facility in China is also progressing ahead of schedule.Albemarle is also taking aggressive cost-saving and productivity actions in the wake of tumbling lithium prices. The company expects to deliver roughly $450 million in cost and productivity improvements in 2025, having surpassed its initial target of $300-$400 million. ALB is taking actions to maintain its competitive position, including the initiation of a comprehensive review of cost and operating structure, optimization of the conversion network and reduction of capital expenditure. It has lowered the full-year 2025 capital expenditures outlook to around $600 million.Soft Lithium Prices Ail ALB StockWeaker lithium market prices are weighing on the company’s performance. ALB’s revenues fell roughly 3.5% year over year to $1,307.8 million in the third quarter, hurt by lower prices in Energy Storage. Sales from its Energy Storage unit fell around 8% due to lower lithium market prices.  Lithium prices have declined amid slowing demand growth for electric vehicles, inventory glut and increased supply. The uncertain macroeconomic environment and high interest rates have weighed on demand. Weaker lithium prices are likely to continue to hurt the company’s results in the fourth quarter.ALB’s Zacks Rank & Key PicksALB currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the Basic Materials space are Kinross Gold Corporation KGC, Fortuna Mining Corp. FSM and Equinox Gold Corp. EQX. At present, KGC sports a Zacks Rank #1 (Strong Buy), while FSM and EQX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for KGC’s current-year earnings is pegged at $1.68 per share, indicating a year-over-year rise of 147%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 17.4%. KGC shares have gained 20% over the past three months.The Zacks Consensus Estimate for FSM’s current fiscal-year earnings is pinned at 76 cents per share, indicating a 65.2% year-over-year increase. Its shares have popped around 19% over the past three months.The Zacks Consensus Estimate for EQX’s current-year earnings stands at 54 cents per share, reflecting a 170% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and missed twice, with the average earnings surprise of 87%. EQX’s shares have rallied roughly 39% over the past three months.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kinross Gold Corporation (KGC): Free Stock Analysis Report Albemarle Corporation (ALB): Free Stock Analysis Report Fortuna Mining Corp. (FSM): Free Stock Analysis Report Equinox Gold Corp. (EQX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks