Livent (LTHM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Livent (LTHM) closed at $26.06, marking a +1.84% move from the previous day. This change outpaced the S&P 500's 0.25% gain on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.
Coming into today, shares of the supplier of performance lithium compounds had gained 29.24% in the past month. In that same time, the Basic Materials sector gained 10.34%, while the S&P 500 gained 5.73%.
Wall Street will be looking for positivity from Livent as it approaches its next earnings report date. This is expected to be February 14, 2023. In that report, analysts expect Livent to post earnings of $0.36 per share. This would mark year-over-year growth of 350%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $242.1 million, up 96.99% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Livent. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.06% lower. Livent currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Livent has a Forward P/E ratio of 13.9 right now. Its industry sports an average Forward P/E of 14.06, so we one might conclude that Livent is trading at a discount comparatively.
The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LTHM in the coming trading sessions, be sure to utilize Zacks.com.
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Livent Corporation (LTHM) : Free Stock Analysis Report
