We recently published a list of 10 Stocks To Trade Without Tariffs And Interest Rate Fears. In this article, we are going to take a look at where Albemarle Corporation (NYSE:ALB) stands against other stocks to trade without tariffs and interest rate fears.
The Federal Reserve this week decided to keep interest rates unchanged, causing Donald Trump to lash out at the Fed chief. Jerome Powell seemed satisfied with the current state of the economy and the job market. What he did not like was the high uncertainty prevailing in the market.
There’s a good reason why the uncertainty is causing problems for the Fed. It can’t reliably predict the future path of the economy if it doesn’t know what data to put in its models. This is pretty much the same problem that stock analysts have. With tariffs causing problems for American businesses, many investors are seeing their portfolios shrink.
In such a scenario, we decided to look at stocks that are largely protected from both tariffs and interest rates. This ‘protection’ comes from the fact that their bull thesis is unlikely to be impacted by either of these factors.
To come up with the list of stocks protected from tariffs and interest rates, we looked at the recently released list of Goldman Sachs’ top stocks with micro-driven volatility.
A team of scientists in a laboratory observing the sophisticated engineering of specialty chemicals.
Albemarle Corporation (NYSE:ALB)
Albemarle Corporation is an energy storage solutions provider. The company operates in Ketjen, Energy Storage, and Specialties segments. It distributes its products to automotive, conventional energy, construction, grid storage, and other industries. After a 32% drop in a year, is the stock finally rebounding?
Albemarle has been a favorite of dividend investors for a long time. Its 5-year record isn’t much to talk about, but the 2.18% dividend yield keeps investors afloat. The company has just announced a $0.405 dividend and that is driving the short-term returns of the stock. However, the real opportunity lies in the long-term potential.
The long-term thesis could play out sooner rather than later. Currently, the EV market is facing a downturn. ALB’s performance in the last year reflects that. However, as soon as the EV market turns, shareholders will be rewarded.
What they do need to keep an eye out for is any potential shareholder dilution to maintain liquidity. On this front, the management has done a great job generating $702 million in operating cash flows in a year, despite lithium prices losing one-third of their value in the same time period. The management is hanging in, and so should the shareholders while they wait for the EV turnaround!
Overall, ALB ranks 4th on our list of stocks to trade without tariffs and interest rate fears. While we acknowledge the potential of ALB as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ALB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
