Li Auto Inc. Sponsored ADR (LI) ended the recent trading session at $18.67, demonstrating a +1.3% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.77%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 1.05%.
Shares of the company have appreciated by 8.8% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 5.85%, and the S&P 500's loss of 0.98%.
The upcoming earnings release of Li Auto Inc. Sponsored ADR will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.05, reflecting a 90.38% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.28 billion, showing a 29.49% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.14 per share and revenue of $16.2 billion. These totals would mark changes of -89.86% and -19.35%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Li Auto Inc Sponsored ADR. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 16.34% decrease. Currently, Li Auto Inc. Sponsored ADR is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Li Auto Inc. Sponsored ADR is currently exchanging hands at a Forward P/E ratio of 42.86. This valuation marks a premium compared to its industry average Forward P/E of 12.55.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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