In the latest close session, Li Auto Inc. Sponsored ADR (LI) was down 2.73% at $29.59. The stock's performance was behind the S&P 500's daily gain of 0.07%. On the other hand, the Dow registered a loss of 0.7%, and the technology-centric Nasdaq increased by 0.18%.
Prior to today's trading, shares of the company had gained 8.22% outpaced the Auto-Tires-Trucks sector's gain of 2.96% and the S&P 500's gain of 5.71%.
The investment community will be closely monitoring the performance of Li Auto Inc. Sponsored ADR in its forthcoming earnings report.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.29 per share and a revenue of $22 billion, indicating changes of -6.52% and +9.54%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Li Auto Inc Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.31% lower. At present, Li Auto Inc. Sponsored ADR boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Li Auto Inc. Sponsored ADR is at present trading with a Forward P/E ratio of 23.55. Its industry sports an average Forward P/E of 10.47, so one might conclude that Li Auto Inc. Sponsored ADR is trading at a premium comparatively.
Investors should also note that LI has a PEG ratio of 1.24 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Automotive - Foreign stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 228, placing it within the bottom 8% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Li Auto Inc. Sponsored ADR (LI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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