Yahoo Finance Livent (LTHM) Gains But Lags Market: What You Should Know
Livent (LTHM) closed the most recent trading day at $26.24, moving +0.34% from the previous trading session. This move lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, lost 5.66%.
Coming into today, shares of the supplier of performance lithium compounds had gained 2.55% in the past month. In that same time, the Basic Materials sector lost 1.53%, while the S&P 500 gained 3.44%.
Wall Street will be looking for positivity from Livent as it approaches its next earnings report date. On that day, Livent is projected to report earnings of $0.45 per share, which would represent year-over-year growth of 21.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $253.14 million, up 15.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.04 per share and revenue of $1.1 billion, which would represent changes of +45.71% and +35.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Livent. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.29% higher. Livent is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Livent's current valuation metrics, including its Forward P/E ratio of 12.83. For comparison, its industry has an average Forward P/E of 16.75, which means Livent is trading at a discount to the group.
Meanwhile, LTHM's PEG ratio is currently 0.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Chemical - Specialty stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Livent Corporation (LTHM) : Free Stock Analysis Report
