In the latest market close, Li Auto Inc. Sponsored ADR (LI) reached $26.37, with a +1.35% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.98%.

Heading into today, shares of the company had gained 17% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 6.09% and the S&P 500's gain of 2.07% in that time.

The investment community will be paying close attention to the earnings performance of Li Auto Inc. Sponsored ADR in its upcoming release.

Investors should also note any recent changes to analyst estimates for Li Auto Inc. Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

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. The Zacks Consensus EPS estimate has moved 7.47% lower within the past month. Li Auto Inc. Sponsored ADR currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Li Auto Inc. Sponsored ADR currently has a Forward P/E ratio of 14.65. This represents a premium compared to its industry's average Forward P/E of 6.93.

One should further note that LI currently holds a PEG ratio of 1.46. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LI's industry had an average PEG ratio of 0.94 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% 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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