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Livent (LTHM) Gains But Lags Market: What You Should Know

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Livent (LTHM) closed the most recent trading day at $20.24, moving +0.7% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.92%. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.12%.

Coming into today, shares of the supplier of performance lithium compounds had lost 9.3% in the past month. In that same time, the Basic Materials sector lost 20.12%, while the S&P 500 gained 1.54%.

Livent will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2022. The company is expected to report EPS of $0.30, up 650% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $219.12 million, up 114.4% from the prior-year quarter.

LTHM's full-year Zacks Consensus Estimates are calling for earnings of $1.23 per share and revenue of $820.39 million. These results would represent year-over-year changes of +583.33% and +95.14%, respectively.

It is also important to note the recent changes to analyst estimates for Livent. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Livent currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Livent currently has a Forward P/E ratio of 16.4. Its industry sports an average Forward P/E of 13.33, so we one might conclude that Livent is trading at a premium comparatively.

The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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