Livent (LTHM) Outpaces Stock Market Gains: What You Should Know

This story originally appeared on Zacks

Livent (LTHM) closed at $24.58 in the last trading session, posting a move of +0.24% from the day before. That change outpaced the S&P 500’s gain of 0.08% on the day. Elsewhere, the Dow Jones lost 0.56%, while the big tech Nasdaq lost 0.42%.

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Heading into the day, shares of high-performance lithium-composites are up 1.7% over the past month, lagging the basic materials sector’s 7.48% gain and outpacing the S&P 500’s 0.22% gain in the time.

Wall Street will be looking for positivity from Livent as it approaches the next earnings report date. In this report, analysts expect Livent to report earnings of $0.06 per share. This would represent an annual growth of 400%. Meanwhile, the Zacks Consensus revenue report expects net sales to come in at $106.05 million, an increase of 29.01% over the same period last year.

Any recent changes to analyst estimates for Livent should also be noted by investors. These recent reviews tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive rating reviews as a good sign of the company’s business outlook.

Our research shows that these discretionary changes are directly correlated with near-term stock prices. We developed Zacks Rank to take advantage of this phenomenon. Our system takes these discretionary changes into account and provides a clear and actionable rating model.

The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). The company has a proven track record of success, subject to external scrutiny, with the No. 1 stock generating an average annual return of over 25% since 1988. In the past 30 days, our EPS aligned forecast is up 14.95%. Livent currently ranks Zacks at #2 (purchase).

In terms of valuation, Livent is currently trading at a forward P/E ratio of 54.9. This rating represents a premium over the industry’s forward P/E average of 17.6.

We can also see that LTHM currently has a PEG ratio of 1.22. 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. LTHM Industry has an average price and ratio of 1.03 as of yesterday’s close.

The specialty chemicals industry is part of the basic materials sector. This group has a Zacks Industry Rating of 174, placing it in the bottom 32% of all 250+ industries.

Zacks Industry Ranks are listed in order from best to worst in terms of the average Zacks rating of individual companies in each of these sectors. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

You can find more information about all of these metrics and more at Zacks.com.

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