In the latest trading session, Li Auto Inc. Sponsored ADR (LI) closed at $27.96, marking a -1.48% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.73%. At the same time, the Dow lost 0.64%, and the tech-heavy Nasdaq gained 1.61%.
Prior to today's trading, shares of the company had gained 18.99% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 20.69% and outpaced the S&P 500's gain of 9.07% in that time.
The upcoming earnings release of Li Auto Inc. Sponsored ADR will be of great interest to investors. The company's earnings report is expected on May 29, 2025.
LI's full-year Zacks Consensus Estimates are calling for earnings of $1.38 per share and revenue of $23.97 billion. These results would represent year-over-year changes of 0% and +19.33%, respectively.
Any recent changes to analyst estimates for Li Auto Inc. Sponsored ADR should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Li Auto Inc. Sponsored ADR is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Li Auto Inc. Sponsored ADR is presently trading at a Forward P/E ratio of 20.61. This valuation marks a premium compared to its industry's average Forward P/E of 7.6.
It's also important to note that LI currently trades at a PEG ratio of 4.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Automotive - Foreign industry held an average PEG ratio of 1.42.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 225, this industry ranks in the bottom 9% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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