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

Lithium Americas Corp. (LAC) closed the most recent trading day at $38.77, moving -0.44% from the previous trading session. This change lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.36%.

Heading into today, shares of the metals and mining company had gained 56.89% over the past month, outpacing the Basic Materials sector's gain of 11.08% and the S&P 500's gain of 5.64% in that time.

Wall Street will be looking for positivity from Lithium Americas Corp. as it approaches its next earnings report date. In that report, analysts expect Lithium Americas Corp. to post earnings of -$0.13 per share. This would mark a year-over-year decline of 44.44%.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 85.62% lower. Lithium Americas Corp. is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Lithium Americas Corp. is holding a Forward P/E ratio of 2225.14. For comparison, its industry has an average Forward P/E of 12.19, 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 industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 31% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.