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

·3 min read

In the latest trading session, Livent (LTHM) closed at $34.45, marking a -0.72% move from the previous day. This change lagged the S&P 500's 1.53% gain on the day. Meanwhile, the Dow gained 1.19%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the supplier of performance lithium compounds had gained 22.44% over the past month. This has outpaced the Basic Materials sector's gain of 0.07% and the S&P 500's loss of 3.1% in that time.

Investors will be hoping for strength from Livent as it approaches its next earnings release. On that day, Livent is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 1200%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $242.83 million, up 134.39% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.38 per share and revenue of $851.62 million. These totals would mark changes of +666.67% and +102.57%, respectively, from last year.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Livent is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Livent is holding a Forward P/E ratio of 25.24. This represents a premium compared to its industry's average Forward P/E of 13.74.

The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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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