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

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Lithium Americas Corp. (LAC - Free Report) closed at $20.98 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's 0.12% gain on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.

Prior to today's trading, shares of the metals and mining company had lost 1.5% over the past month. This has lagged the Basic Materials sector's loss of 1.25% and the S&P 500's gain of 3.98% 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 -$0.14, down 16.67% from the prior-year quarter.

Any recent changes to analyst estimates for Lithium Americas Corp. should also be noted by investors. 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. 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, 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. The Zacks Consensus EPS estimate has moved 25.76% lower within the past month. 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 47.55. This represents a premium compared to its industry's average Forward P/E of 13.91.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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