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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 $19.46 in the latest trading session, marking a +0.46% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.45%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.99%.

Heading into today, shares of the metals and mining company had lost 4.06% over the past month, lagging the Basic Materials sector's gain of 4.21% and the S&P 500's gain of 4.25% 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.

It is also important to note the 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 16.82% lower within the past month. Lithium Americas Corp. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Lithium Americas Corp. is holding a Forward P/E ratio of 43.77. This valuation marks a premium compared to its industry's average Forward P/E of 14.61.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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.

To follow LAC in the coming trading sessions, be sure to utilize Zacks.com.


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