In the latest close session, Li Auto Inc. Sponsored ADR (LI) was up +1.38% at $16.94. The stock's performance was ahead of the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.43%.
Heading into today, shares of the company had lost 4.19% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 4.56% and lagging the S&P 500's gain of 0.18%.
The investment community will be paying close attention to the earnings performance of Li Auto Inc. Sponsored ADR in its upcoming release. The company is forecasted to report an EPS of $0.05, showcasing a 90.38% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $4.24 billion, indicating a 30.16% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.14 per share and revenue of $16.15 billion. These totals would mark changes of -89.86% and 0%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Li Auto Inc Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Li Auto Inc. Sponsored ADR possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Li Auto Inc. Sponsored ADR is currently trading at a Forward P/E ratio of 32.51. This represents a premium compared to its industry average Forward P/E of 12.73.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 219, placing it within the bottom 11% 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.
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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