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Lithium Americas Corp. (LAC) Stock Sinks As Market Gains: Here's Why

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Lithium Americas Corp. (LAC - Free Report) closed the most recent trading day at $5.74, moving -9.32% from the previous trading session. This change lagged the S&P 500's 0.26% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.48%.

The stock of lithium producer has risen by 111.71% in the past month, leading the Basic Materials sector's gain of 4.08% and the S&P 500's gain of 2.87%.

Market participants will be closely following the financial results of Lithium Americas Corp. in its upcoming release. The company's earnings per share (EPS) are projected to be -$0.05, reflecting a 400% decrease from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.19 per share and a revenue of $0 million, representing changes of +9.52% and 0%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Lithium Americas Corp. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 2.55% rise in the Zacks Consensus EPS estimate. Lithium Americas Corp. is currently a Zacks Rank #3 (Hold).

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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