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

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Li Auto Inc. Sponsored ADR (LI - Free Report) closed at $23.21 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.

Coming into today, shares of the company had gained 0.65% in the past month. In that same time, the Auto-Tires-Trucks sector lost 4.19%, while the S&P 500 gained 0.25%.

Investors will be hoping for strength from Li Auto Inc. Sponsored ADR as it approaches its next earnings release.

LI's full-year Zacks Consensus Estimates are calling for earnings of $0.14 per share and revenue of $15.09 billion. These results would represent year-over-year changes of +1300% and +125.8%, respectively.

Investors might also notice 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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 115% higher. Li Auto Inc. Sponsored ADR currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Li Auto Inc. Sponsored ADR has a Forward P/E ratio of 163.12 right now. This represents a premium compared to its industry's average Forward P/E of 7.32.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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.

To follow LI in the coming trading sessions, be sure to utilize Zacks.com.


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