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Lithium Americas Corp. (LAC) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Lithium Americas Corp. (LAC - Free Report) closed at $32.95, marking a -0.3% move from the previous day. This move lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.44%.

Coming into today, shares of the metals and mining company had gained 15.8% in the past month. In that same time, the Basic Materials sector gained 9.15%, while the S&P 500 gained 4.69%.

Wall Street will be looking for positivity from Lithium Americas Corp. as it approaches its next earnings report date. In that report, analysts expect Lithium Americas Corp. to post earnings of -$0.13 per share. This would mark a year-over-year decline of 44.44%.

Any recent changes to analyst estimates for Lithium Americas Corp. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 85.62% lower within the past month. Lithium Americas Corp. currently has a Zacks Rank of #4 (Sell).

Investors should also note Lithium Americas Corp.'s current valuation metrics, including its Forward P/E ratio of 1888.57. For comparison, its industry has an average Forward P/E of 12.38, which means Lithium Americas Corp. is trading at a premium to the group.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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.

To follow LAC in the coming trading sessions, be sure to utilize Zacks.com.


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