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Li Auto Inc. Sponsored ADR (LI) Falls More Steeply Than Broader Market: What Investors Need to Know

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The latest trading session saw Li Auto Inc. Sponsored ADR (LI - Free Report) ending at $27.55, denoting a -0.93% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq lost 0.76%.

Shares of the company have depreciated by 25.7% over the course of the past month, underperforming the Auto-Tires-Trucks sector's loss of 10.26% and the S&P 500's gain of 3.36%.

Market participants will be closely following the financial results of Li Auto Inc. Sponsored ADR in its upcoming release.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Li Auto Inc. Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 1.93% higher. Currently, Li Auto Inc. Sponsored ADR is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Li Auto Inc. Sponsored ADR is holding a Forward P/E ratio of 15.8. This denotes a premium relative to the industry's average Forward P/E of 6.28.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 63, placing it within the top 25% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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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