And is LICY a buy

Li-Cycle Holdings Corp. (LICY) is not a buy at this time based on the following analysis:

1. Technical Indicators Show Weakness:
   • LICY's resistance level is at $4, which the stock is currently trading below, indicating a lack of upward momentum.
   • The stock's support level is at $3, which is close to the current trading price, suggesting that the stock may find some support here but also indicates a general weakness in the stock's trajectory.
   • The Relative Strength Index (RSI) is at 71.47, which is considered to be in the overbought territory and may suggest a potential pullback or consolidation.
   • The Moving Average Convergence Divergence (MACD) is at 0.29, which could indicate a potential reversal if the stock price were to fall below the current support level.

LICY Trend

2. Financial Performance and Valuation:
   • LICY has a negative P/E ratio of -0.31, which suggests that the company is not profitable and is currently unvaluable based on earnings.
   • The Price to Book (P/B) ratio is at 0.36, which is low and may indicate a potential value play if the company were to turn profitable.
   • The Price to Sales (P/S) ratio is at 3.33, which is relatively high, suggesting that the market may be paying a premium for the stock's sales.

1/3

LICY P/E(TTM)

3. Market Sentiment and Fund Flow:
   • The consensus rating for LICY is currently "hold," with no strong buy or sell ratings, indicating a lack of positive sentiment among analysts.
   • The net fund flow is positive at $94,063.51, which could be a sign that investors are still interested in the stock.
   • Institutional investors have been adjusting their positions, with some selling and others buying, indicating no clear consensus among them.
4. Earnings and Revenue Expectations:
   • LICY reported quarterly adjusted earnings of $2.15 per share for the quarter ended September 30, which is a significant improvement from the previous year's EPS of$-1.52.
   • However, revenue fell 6.4% to $4.40 million from a year ago, which may raise concerns about the company's growth prospects.
   • The company's stock price has experienced a significant pre-market increase of 39.05% on November 7, 2024, which may have been driven by the earnings report, but the sustainability of this increase is uncertain.

In conclusion, while LICY has shown some positive signs of improvement in its financial performance, the technical indicators and lack of positive sentiment among analysts suggest that it may not be a compelling buy at this time. Investors should exercise caution and consider the potential risks before making a buying decision.