Lithium Americas Corp (LAC - Free Report) is a Zacks Rank #2 (Buy) and it is the Bull of the Day today. This is a name that I have pointed to as being a benefactor of the surge in demand for electric vehicles. At the start of the year I told subscribers of Zacks that I believed that 2021 would be the year of the EV, and so far so good on that call. We have TSLA staying in the headlines and posting great delivery numbers. Those of you that recognize my name know that I have been a long time bull on TSLA and I believe the stock continues to move higher.
LAC is in the EV space as a supplier for the batteries in the cars and other devices.
Description
Lithium Americas Corp. owns Lithium Nevada and RheoMinerals Inc., a supplier of rheology modifiers for oilbased drilling fluids, coatings and specialty chemicals. Lithium Americas Corp. is based in Vancouver, Canada.
Earnings History
I see a good earnings history, not a great one, a good one. The company has posted 3 beats in the last four quarters. The lone miss was 3 quarters ago and it was a big one so it skews the average.
Earnings Estimate Revisions
I see estimates moving higher across the board.
This quarter has moved from a loss of 12 cent to a loss of 10 cents.
Next quarter saw a move of the exact same amount.
This year is looking at a loss of 31 cents and that is better than the previous reading of a loss of 38 cents.
Next year the analysts have a loss of 4 cents and that is down from a loss of 7 cents.
Just looking at the numbers you have the sense that the company might be able to turn the corner and post a profitable quarter soon.
Valuation
No earnings means no forward PE, so we have to lean on the price to book. I see a 9.3x book multiple which is high, but the idea here is that the demand for lithium is increasing. The demand for automakers alone is driving this stock higher.
Chart
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Lithium Americas Corp (LAC - Free Report) is a Zacks Rank #2 (Buy) and it is the Bull of the Day today. This is a name that I have pointed to as being a benefactor of the surge in demand for electric vehicles. At the start of the year I told subscribers of Zacks that I believed that 2021 would be the year of the EV, and so far so good on that call. We have TSLA staying in the headlines and posting great delivery numbers. Those of you that recognize my name know that I have been a long time bull on TSLA and I believe the stock continues to move higher.
LAC is in the EV space as a supplier for the batteries in the cars and other devices.
Description
Lithium Americas Corp. owns Lithium Nevada and RheoMinerals Inc., a supplier of rheology modifiers for oilbased drilling fluids, coatings and specialty chemicals. Lithium Americas Corp. is based in Vancouver, Canada.
Earnings History
I see a good earnings history, not a great one, a good one. The company has posted 3 beats in the last four quarters. The lone miss was 3 quarters ago and it was a big one so it skews the average.
Earnings Estimate Revisions
I see estimates moving higher across the board.
This quarter has moved from a loss of 12 cent to a loss of 10 cents.
Next quarter saw a move of the exact same amount.
This year is looking at a loss of 31 cents and that is better than the previous reading of a loss of 38 cents.
Next year the analysts have a loss of 4 cents and that is down from a loss of 7 cents.
Just looking at the numbers you have the sense that the company might be able to turn the corner and post a profitable quarter soon.
Valuation
No earnings means no forward PE, so we have to lean on the price to book. I see a 9.3x book multiple which is high, but the idea here is that the demand for lithium is increasing. The demand for automakers alone is driving this stock higher.
Chart
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on LAC - FREE