Li Auto Inc. Sponsored ADR (LI) closed the latest trading day at $25.20, indicating a -1.25% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.14%.
The the stock of company has fallen by 16.95% in the past month, lagging the Auto-Tires-Trucks sector's loss of 8.05% and the S&P 500's loss of 6.22%.
The upcoming earnings release of Li Auto Inc. Sponsored ADR will be of great interest to investors.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.38 per share and a revenue of $23.97 billion, representing changes of 0% and +19.33%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Li Auto Inc. Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 moved 19.34% lower. Li Auto Inc. Sponsored ADR currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Li Auto Inc. Sponsored ADR is currently trading at a Forward P/E ratio of 18.54. Its industry sports an average Forward P/E of 6.6, so one might conclude that Li Auto Inc. Sponsored ADR is trading at a premium comparatively.
Meanwhile, LI's PEG ratio is currently 3.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Automotive - Foreign industry had an average PEG ratio of 1.13.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 128, finds itself in the top 50% echelons 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.
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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This article originally published on Zacks Investment Research (zacks.com).
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