ZACKSยท2025-07-18 22:46Company Performance - Li Auto Inc. Sponsored ADR (LI) experienced a stock increase of 1.4% to $31.80, outperforming the S&P 500's daily loss of 0.01% [1] - Over the last month, the company's shares have risen by 18.7%, significantly exceeding the Auto-Tires-Trucks sector's gain of 3.5% and the S&P 500's gain of 5.37% [1] Earnings Estimates - For the upcoming earnings disclosure, Zacks Consensus Estimates project earnings of $1.29 per share and revenue of $22 billion, reflecting a decrease of 6.52% in earnings and an increase of 9.54% in revenue compared to the previous year [2] Analyst Estimates - Recent modifications to analyst estimates for Li Auto Inc. are crucial as they indicate changing near-term business trends, with positive revisions suggesting analyst optimism about the company's profitability [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Li Auto Inc. at 3 (Hold), with the consensus EPS estimate having decreased by 0.31% over the past month [5] - Historically, 1 ranked stocks have delivered an average annual return of +25% since 1988 [5] Valuation Metrics - Li Auto Inc. has a Forward P/E ratio of 24.27, indicating a premium compared to the industry average Forward P/E of 9.75 [6] - The company also has a PEG ratio of 1.27, which is higher than the Automotive - Foreign industry's average PEG ratio of 1.06 [7] Industry Context - The Automotive - Foreign industry, part of the Auto-Tires-Trucks sector, holds a Zacks Industry Rank of 228, placing it in the bottom 8% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]