Back to top

Image: Bigstock

Lithium Americas Corp. (LAC) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Lithium Americas Corp. (LAC - Free Report) closed at $23.59, marking a -0.76% move from the previous day. This change lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.84%.

Prior to today's trading, shares of the metals and mining company had gained 8.09% over the past month. This has outpaced the Basic Materials sector's loss of 5.47% and the S&P 500's loss of 2% in that time.

Investors will be hoping for strength from Lithium Americas Corp. as it approaches its next earnings release. On that day, Lithium Americas Corp. is projected to report earnings of -$0.25 per share, which would represent a year-over-year decline of 150%.

Investors might also notice recent changes to analyst estimates for Lithium Americas Corp.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 2.6% lower. Lithium Americas Corp. currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Lithium Americas Corp. currently has a Forward P/E ratio of 21.33. For comparison, its industry has an average Forward P/E of 13.01, which means Lithium Americas Corp. is trading at a premium to the group.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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 LAC in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lithium Americas Corp. (LAC) - free report >>

Published in