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Why Li Auto Inc. Sponsored ADR (LI) Outpaced the Stock Market Today

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Li Auto Inc. Sponsored ADR (LI - Free Report) closed the most recent trading day at $25.83, moving +1.29% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.39%.

Prior to today's trading, shares of the company had gained 5.81% lagged the Auto-Tires-Trucks sector's gain of 21% and outpaced the S&P 500's gain of 3.94%.

The investment community will be paying close attention to the earnings performance of Li Auto Inc. Sponsored ADR in its upcoming release.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.71 per share and revenue of $19.6 billion, which would represent changes of -48.55% and -2.4%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Li Auto Inc Sponsored ADR. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 23.98% decrease. Right now, Li Auto Inc. Sponsored ADR possesses a Zacks Rank of #3 (Hold).

Investors should also note Li Auto Inc. Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 35.92. This indicates a premium in contrast to its industry's Forward P/E of 12.12.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 30% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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