4-Star Stocks Poised to Pop: Albemarle

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty chemicals company Albemarle (NYS: ALB) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Albemarle's business and see what CAPS investors are saying about the stock right now.

Albemarle facts

Headquarters (Founded)Baton Rouge, La. (1993)
Market Cap$5.6 billion
IndustrySpecialty chemicals
Trailing-12-Month Revenue$2.9 billion
ManagementCEO Luther Kissam (since 2011)
CFO Scott Tozier (since 2011)
Return on Equity (Average, Past 3 Years)23.4%
Cash/Debt$481.3 million / $891.2 million
Dividend Yield1.2%
CompetitorsChemtura
ICL Industrial Products
W.R. Grace and Co.

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 228 members who have rated Albemarle believe the stock will outperform the S&P 500 going forward.  

Just last month, one of those bulls, All-Star BSHumphreyII, touched on the tailwinds working in Albemarle's favor:

Oilfield chemicals and lithium? What's not to love with that one-two punch? No matter where future energy policy goes, we're going to be seeing an onshore drilling boom, and we're going to be seeing a steadily increasing demand for heavy batteries.

Add to that Albemarle's solid financials and strong [return on equity], and I think this is a strong long-term play going forward. Even if market takes another hit, Albemarle could be a tempting takeover target.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Albemarle may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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