Livent closed at $20.22 in the latest trading session, marking a +1.56% move from the prior day. The stock lagged the S&P 500's daily gain of 1.76%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.
Heading into today, shares of the supplier of performance lithium compounds had lost 27.31% over the past month, lagging the Basic Materials sector's loss of 7.76% and the S&P 500's loss of 5.94% in that time.
Investors will be hoping for strength from Livent as it approaches its next earnings release. In that report, analysts expect Livent to post earnings of $0.39 per share. This would mark year-over-year growth of 85.71%. Meanwhile, our latest consensus estimate is calling for revenue of $246.55 million, up 71.81% from the prior-year quarter.
LTHM's full-year Zacks Consensus Estimates are calling for earnings of $1.90 per share and revenue of $1.12 billion. These results would represent year-over-year changes of +35.71% and +37.52%, respectively.
Any recent changes to analyst estimates for Livent should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.5% higher. Livent currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Livent is currently trading at a Forward P/E ratio of 10.45. This represents a discount compared to its industry's average Forward P/E of 15.25.
Meanwhile, LTHM's PEG ratio is currently 0.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Chemical - Specialty stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.
The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Image: Bigstock
Livent (LTHM) Gains But Lags Market: What You Should Know
Livent closed at $20.22 in the latest trading session, marking a +1.56% move from the prior day. The stock lagged the S&P 500's daily gain of 1.76%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.
Heading into today, shares of the supplier of performance lithium compounds had lost 27.31% over the past month, lagging the Basic Materials sector's loss of 7.76% and the S&P 500's loss of 5.94% in that time.
Investors will be hoping for strength from Livent as it approaches its next earnings release. In that report, analysts expect Livent to post earnings of $0.39 per share. This would mark year-over-year growth of 85.71%. Meanwhile, our latest consensus estimate is calling for revenue of $246.55 million, up 71.81% from the prior-year quarter.
LTHM's full-year Zacks Consensus Estimates are calling for earnings of $1.90 per share and revenue of $1.12 billion. These results would represent year-over-year changes of +35.71% and +37.52%, respectively.
Any recent changes to analyst estimates for Livent should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.5% higher. Livent currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Livent is currently trading at a Forward P/E ratio of 10.45. This represents a discount compared to its industry's average Forward P/E of 15.25.
Meanwhile, LTHM's PEG ratio is currently 0.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Chemical - Specialty stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.
The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.