In the latest market close, Li Auto Inc. Sponsored ADR (LI) reached $26.04, with a -0.53% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.46%.

The company's stock has dropped by 0.68% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 8.54% and the S&P 500's loss of 3.59%.

The investment community will be closely monitoring the performance of Li Auto Inc. Sponsored ADR in its forthcoming earnings report.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.38 per share and a revenue of $23.97 billion, indicating changes of 0% and +19.33%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Li Auto Inc. Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 19.02% decrease. As of now, Li Auto Inc. Sponsored ADR holds a Zacks Rank of #3 (Hold).

Looking at valuation, Li Auto Inc. Sponsored ADR is presently trading at a Forward P/E ratio of 19.02. Its industry sports an average Forward P/E of 7.24, so one might conclude that Li Auto Inc. Sponsored ADR is trading at a premium comparatively.

We can also see that LI currently has a PEG ratio of 4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Automotive - Foreign industry had an average PEG ratio of 1.09.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 132, putting it in the bottom 48% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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