In the latest trading session, Li Auto Inc. Sponsored ADR (LI) closed at $25.25, marking a +0.84% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.64%. On the other hand, the Dow registered a loss of 0.24%, and the technology-centric Nasdaq decreased by 0.74%.

The company's stock has climbed by 8.54% in the past month, exceeding the Auto-Tires-Trucks sector's gain of 1.58% and the S&P 500's gain of 0.38%.

The investment community will be closely monitoring the performance of Li Auto Inc. Sponsored ADR in its forthcoming earnings report.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.38 per share and revenue of $23.97 billion. These totals would mark changes of 0% and +19.33%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Li Auto Inc. Sponsored ADR. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Li Auto Inc. Sponsored ADR holds a Zacks Rank of #4 (Sell).

In the context of valuation, Li Auto Inc. Sponsored ADR is at present trading with a Forward P/E ratio of 18.19. This valuation marks a premium compared to its industry's average Forward P/E of 7.66.

One should further note that LI currently holds a PEG ratio of 3.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Foreign industry had an average PEG ratio of 1.28 as trading concluded yesterday.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 11% of all 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.

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

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This article originally published on Zacks Investment Research (zacks.com).

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