Livent (LTHM) Dips More Than Broader Markets: What You Should Know

This story originally appeared on Zacks

Livent (LTHM) closed at $23.73 in the last trading session, recording a -1.94% move from the previous day. The move delayed the S&P 500’s daily loss of 0.1%. Elsewhere, the Dow Jones lost 0.47%, while the big tech Nasdaq lost 0.47%.

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As of today, stocks of high-performance lithium compounds have lost 15.44% in the past month. At the same time, the basic materials sector rose 6.68%, while the S&P 500 rose 3.67%.

Livent will be looking to show strength as it nears its next earnings release. In this report, analysts expect Livent to report earnings of $0.06 per share. This would represent an annual growth of 400%. Our latest consensus estimate calls for quarterly revenue of $105.45 million, an increase of 28.28% over the same period last year.

It’s also important to note recent changes in analyst estimates for Livent. Recent reviews tend to reflect the latest near-term business trends. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.

Our research shows that these discretionary changes are directly correlated with near-term stock prices. To take advantage of this, we have developed Zacks Rank, a proprietary model that takes these discretionary changes into account and provides an actionable ranking system.

Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank has a track record of outperforming externally audited, with the #1 stock having achieved a +25% average annual return since 1988. More in a month Last, Zacks Consensus EPS was up 5.51%. Livent currently has a Zacks rating of 3 (Hold).

Investors should also note Livent’s current valuation metrics, including a forward price-to-earnings ratio of 59.02. This valuation represents a premium over the industry’s forward P/E average of 17.74.

Investors should also note that LTHM has a PEG ratio of 1.31 at the moment. The price-earnings-growth (PEG) ratio is similar to the widely used price-to-earnings (P/E) ratio, but this metric also takes into account a company’s expected earnings growth rate. The specialty chemicals industry currently has an average price-wage ratio of 1.01 as of yesterday’s close.

The specialty chemicals industry is part of the basic materials sector. This group has a Zacks Industry rank of 162, placing it in the bottom 37% of all 250+ industries.

Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% 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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