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Livent (LTHM) Falls More Steeply Than Broader Market: What Investors Need to Know

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Livent closed at $15.83 in the latest trading session, marking a -1.68% move from the prior day. This change lagged the S&P 500's daily loss of 1.26%. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq decreased by 1.54%.

The supplier of performance lithium compounds's shares have seen a decrease of 7.15% over the last month, not keeping up with the Basic Materials sector's loss of 6.86% and the S&P 500's loss of 3.67%.

The upcoming earnings release of Livent will be of great interest to investors. The company's earnings report is expected on October 31, 2023. The company's upcoming EPS is projected at $0.46, signifying a 12.2% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $274.37 million, indicating a 18.47% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.07 per share and a revenue of $1.07 billion, signifying shifts of +47.86% and +31.96%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Livent. These recent revisions tend to reflect the evolving nature of short-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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.57% downward. Right now, Livent possesses a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Livent is holding a Forward P/E ratio of 7.77. Its industry sports an average Forward P/E of 14.24, so one might conclude that Livent is trading at a discount comparatively.

Investors should also note that LTHM has a PEG ratio of 0.78 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Chemical - Specialty industry currently had an average PEG ratio of 2.2 as of yesterday's close.

The Chemical - Specialty industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 235, this industry ranks in the bottom 7% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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