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Livent (LTHM) Rises But Trails Market: What Investors Should Know

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The latest trading session saw Livent ending at $16.44, denoting a +0.92% adjustment from its last day's close. This change lagged the S&P 500's 1.03% gain on the day. Elsewhere, the Dow gained 0.87%, while the tech-heavy Nasdaq added 1.26%.

The supplier of performance lithium compounds's shares have seen an increase of 19.17% over the last month, surpassing the Basic Materials sector's gain of 6.06% and the S&P 500's gain of 3.01%.

The investment community will be closely monitoring the performance of Livent in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.36, reflecting a 10% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $209.97 million, reflecting a 4.3% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.89 per share and revenue of $907.37 million, indicating changes of +35% and +11.58%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Livent. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.07% lower. Livent is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Livent's current valuation metrics, including its Forward P/E ratio of 8.6. This indicates a discount in contrast to its industry's Forward P/E of 17.96.

Also, we should mention that LTHM has a PEG ratio of 0.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Chemical - Specialty industry currently had an average PEG ratio of 2.75 as of yesterday's close.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 41% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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 LTHM in the coming trading sessions, be sure to utilize

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