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

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The most recent trading session ended with Livent standing at $17.90, reflecting a +1.02% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 0.16%.

Prior to today's trading, shares of the supplier of performance lithium compounds had gained 30.87% over the past month. This has outpaced the Basic Materials sector's gain of 8.36% and the S&P 500's gain of 4.89% in that time.

The investment community will be paying close attention to the earnings performance of Livent in its upcoming release. The company is predicted to post an EPS of $0.36, indicating a 10% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $209.97 million, down 4.3% from the prior-year quarter.

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.

Investors should also take note of any recent adjustments to analyst estimates for Livent. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 past month, the Zacks Consensus EPS estimate has moved 2.07% lower. Livent is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Livent is currently being traded at a Forward P/E ratio of 9.35. This signifies a discount in comparison to the average Forward P/E of 18.48 for its industry.

It's also important to note that LTHM currently trades at a PEG ratio of 0.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Chemical - Specialty industry held an average PEG ratio of 2.78.

The Chemical - Specialty industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 145, placing it within the bottom 43% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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