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Lithium Americas Corp. (LAC) Outpaces Stock Market Gains: What You Should Know

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Lithium Americas Corp. (LAC - Free Report) closed at $19.12 in the latest trading session, marking a +0.74% move from the prior day. This change outpaced the S&P 500's 0.1% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq lost 2.19%.

Heading into today, shares of the metals and mining company had lost 8.84% over the past month, lagging the Basic Materials sector's gain of 0.68% and the S&P 500's gain of 3.13% in that time.

Wall Street will be looking for positivity from Lithium Americas Corp. as it approaches its next earnings report date. The company is expected to report EPS of $0, up 100% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Lithium Americas Corp.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lithium Americas Corp. currently has a Zacks Rank of #3 (Hold).

Investors should also note Lithium Americas Corp.'s current valuation metrics, including its Forward P/E ratio of 19.2. For comparison, its industry has an average Forward P/E of 13.69, 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 200, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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