Li Auto Inc. Sponsored ADR (LI) Registers a Bigger Fall Than the Market: Important Facts to Note
The latest trading session saw Li Auto Inc. Sponsored ADR (LI) ending at $20.10, denoting a -1.03% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.78%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.7%.
Prior to today's trading, shares of the company had gained 10.68% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 17.69% and outpaced the S&P 500's gain of 2.14% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Li Auto Inc. Sponsored ADR in its upcoming earnings disclosure.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.39 per share and revenue of $19.47 billion, which would represent changes of -13.66% and +12.42%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Li Auto Inc. Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Li Auto Inc. Sponsored ADR is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note Li Auto Inc. Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 14.61. This signifies a premium in comparison to the average Forward P/E of 7.03 for its industry.
It is also worth noting that LI currently has a PEG ratio of 1.84. 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 average PEG ratio for the Automotive - Foreign industry stood at 0.62 at the close of the market yesterday.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 33% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report