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Livent (LTHM) Ascends While Market Falls: Some Facts to Note

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Livent ended the recent trading session at $18.05, demonstrating a +0.39% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.

Heading into today, shares of the supplier of performance lithium compounds had gained 32.99% over the past month, outpacing the Basic Materials sector's gain of 4.35% and the S&P 500's gain of 4% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Livent in its upcoming earnings disclosure. On that day, Livent is projected to report earnings of $0.36 per share, which would represent a year-over-year decline of 10%. In the meantime, our current consensus estimate forecasts the revenue to be $209.97 million, indicating a 4.3% decline compared to the corresponding quarter of the prior year.

Investors should also note any recent changes to analyst estimates for Livent. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.6% lower. Livent is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Livent has a Forward P/E ratio of 11.02 right now. This denotes a discount relative to the industry's average Forward P/E of 15.71.

Meanwhile, LTHM's PEG ratio is currently 0.55. 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 2.52 as of yesterday's close.

The Chemical - Specialty industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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