LI AUTO-Why Li Auto Inc. Sponsored ADR (LI) Dipped More Than Broader Market Today

Group 1 - Li Auto Inc. Sponsored ADR closed at $23.44, reflecting a -1.72% change from the previous day, underperforming compared to the S&P 500's daily loss of 0.17% [1] - Over the past month, shares of Li Auto have decreased by 12.8%, while the Auto-Tires-Trucks sector and the S&P 500 lost 4.37% and 3.94%, respectively [1] - Analysts expect Li Auto to report earnings of$ 1.38 per share and revenue of $23.97 billion for the full year, indicating no change in earnings and a 19.33% increase in revenue compared to last year [2] Group 2 - Recent adjustments to analyst estimates for Li Auto are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with stocks rated 1 averaging a +25% annual return since 1988; currently, Li Auto holds a Zacks Rank of 3 (Hold) [5] Group 3 - Li Auto's Forward P/E ratio stands at 17.32, which is a premium compared to the industry's average Forward P/E of 6.36 [6] - The company has a PEG ratio of 3.65, significantly higher than the Automotive - Foreign industry's average PEG ratio of 1.2, indicating a higher valuation relative to expected earnings growth [7] - The Automotive - Foreign industry, part of the Auto-Tires-Trucks sector, ranks in the top 35% of all industries according to the Zacks Industry Rank [7][8]