Li Auto Inc. Sponsored ADR (LI) Exceeds Market Returns: Some Facts to Consider

Li Auto Inc. Sponsored ADR (LI) closed the most recent trading day at $22.79, moving +0.75% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.53% for the day. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 0.22%.Coming into today, shares of the company had lost 7.45% in the past month. In that same time, the Auto-Tires-Trucks sector lost 1.54%, while the S&P 500 gained 2.69%.Market participants will be closely following the financial results of Li Auto Inc. Sponsored ADR in its upcoming release.Any recent changes to analyst estimates for Li Auto Inc. Sponsored ADR should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.19% fall in the Zacks Consensus EPS estimate. Li Auto Inc. Sponsored ADR is holding a Zacks Rank of #4 (Sell) right now.In terms of valuation, Li Auto Inc. Sponsored ADR is currently trading at a Forward P/E ratio of 12.73. This signifies a premium in comparison to the average Forward P/E of 6.77 for its industry.Also, we should mention that LI has a PEG ratio of 1.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Automotive - Foreign industry had an average PEG ratio of 0.79.The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% of all 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Li Auto Inc. Sponsored ADR (LI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks