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Li Auto Inc. Sponsored ADR (LI) Gains As Market Dips: What You Should Know

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Li Auto Inc. Sponsored ADR (LI - Free Report) closed at $24.30 in the latest trading session, marking a +1.08% move from the prior day. The stock outpaced the S&P 500's daily loss of 2%. Meanwhile, the Dow lost 2.06%, and the Nasdaq, a tech-heavy index, lost 2.32%.

Heading into today, shares of the company had gained 1.99% over the past month, lagging the Auto-Tires-Trucks sector's gain of 23.75% and the S&P 500's gain of 2.88% in that time.

Investors will be hoping for strength from Li Auto Inc. Sponsored ADR as it approaches its next earnings release, which is expected to be February 27, 2023. The company is expected to report EPS of -$0.19, down 272.73% from the prior-year quarter.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 37.5% lower within the past month. Li Auto Inc. Sponsored ADR is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Li Auto Inc. Sponsored ADR has a Forward P/E ratio of 360.6 right now. This valuation marks a premium compared to its industry's average Forward P/E of 7.45.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

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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