In the latest close session, Li Auto Inc. Sponsored ADR (LI) was up +2.9% at $17.02. The stock exceeded the S&P 500, which registered a loss of 0.84% for the day. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 1.43%.
The company's shares have seen a decrease of 4.72% over the last month, not keeping up with the Auto-Tires-Trucks sector's loss of 1.52% and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of Li Auto Inc. Sponsored ADR in its upcoming earnings disclosure. On that day, Li Auto Inc. Sponsored ADR is projected to report earnings of $0.05 per share, which would represent a year-over-year decline of 90.38%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.24 billion, indicating a 30.16% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.14 per share and revenue of $16.15 billion, indicating changes of -89.86% and 0%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Li Auto Inc. Sponsored ADR should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Li Auto Inc. Sponsored ADR possesses a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Li Auto Inc. Sponsored ADR has a Forward P/E ratio of 32.18 right now. This represents a premium compared to its industry average Forward P/E of 13.06.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 16% 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 follow all of these stock-moving metrics, and many 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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