In the latest trading session, Li Auto Inc. Sponsored ADR (LI) closed at $23.98, marking a +0.82% move from the previous day. The stock lagged the S&P 500's daily gain of 1.67%. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
Heading into today, shares of the company had lost 8.68% over the past month, lagging the Auto-Tires-Trucks sector's loss of 6.08% and the S&P 500's loss of 6.57% in that time.
The upcoming earnings release of Li Auto Inc. Sponsored ADR will be of great interest to investors.
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. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Li Auto Inc. Sponsored ADR boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Li Auto Inc. Sponsored ADR is currently exchanging hands at a Forward P/E ratio of 17.27. Its industry sports an average Forward P/E of 7.4, so one might conclude that Li Auto Inc. Sponsored ADR is trading at a premium comparatively.
It is also worth noting that LI currently has a PEG ratio of 3.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Foreign industry currently had an average PEG ratio of 1.24 as of yesterday's close.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 34% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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