“Pay close attention to oversold lithium stocks, like Albemarle (ALB),” we said on July 31. “After dropping from about $240 to $209.13, the ALB stock appears to have caught strong support and could pivot higher again shortly. It’s also oversold on RSI, MACD, and Williams’ %R, and could potentially run back to $240 on the strength of the lithium story.”
Today, ALB is finally starting to turn after crushing earnings.
The company posted adjusted earnings per share of $7.33 from $2.4 billion in sales. Wall Street was looking for earnings per share of $4.48 from sales of $2.4 billion. It also reported first-quarter earnings per share of $10.32 from sales of $2.6 billion.
Then, it raised its fiscal year 2023 EPS range to $25 to $29.50 from a prior range of $20.75 to $25.75. Helping, Credit Suisse just raised its target price to $185 from $163 a share.
ALB last traded at $203 a share and could push aggressively higher with lithium demand.