Li Auto Inc. Sponsored ADR (LI) ended the recent trading session at $26.45, demonstrating a -3.4% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw a downswing of 0.39%, while the tech-heavy Nasdaq appreciated by 0.15%.
Prior to today's trading, shares of the company had gained 2.05% outpaced the Auto-Tires-Trucks sector's gain of 1.97% and lagged the S&P 500's gain of 3.39%.
The upcoming earnings release of Li Auto Inc. Sponsored ADR will be of great interest to investors.
For the full year, the Zacks Consensus Estimates project earnings of $1.29 per share and a revenue of $22 billion, demonstrating changes of -6.52% and +9.54%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Li Auto Inc Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
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. Over the past month, there's been a 0.31% fall in the Zacks Consensus EPS estimate. As of now, Li Auto Inc. Sponsored ADR holds a Zacks Rank of #3 (Hold).
With respect to valuation, Li Auto Inc. Sponsored ADR is currently being traded at a Forward P/E ratio of 21.19. This signifies a premium in comparison to the average Forward P/E of 10.23 for its industry.
Investors should also note that LI has a PEG ratio of 1.11 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Foreign was holding an average PEG ratio of 1.1 at yesterday's closing price.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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