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Here's Why Li Auto Inc. Sponsored ADR (LI) Fell More Than Broader Market

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Li Auto Inc. Sponsored ADR (LI - Free Report) closed the latest trading day at $23.47, indicating a -1.68% change from the previous session's end. This change lagged the S&P 500's 0.46% loss on the day. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 0.64%.

Prior to today's trading, shares of the company had lost 20.91% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 6.9% and the S&P 500's loss of 3.04% 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.97 per share and a revenue of $27.6 billion, representing changes of +22.36% and +59.38%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Li Auto Inc. Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 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 #1 (Strong Buy).

Investors should also note Li Auto Inc. Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 12.1. This denotes a premium relative to the industry's average Forward P/E of 6.06.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 189, placing it within the bottom 25% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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